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Segment Information (Tables)
3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of reconciliation of segment information to the totals reported in the accompanying consolidated financial statements
The tables below set forth information about the Company’s operating segments for the three months ended March 31, 2025 and 2024, along with the items necessary to reconcile the segment information to the totals reported in the accompanying condensed consolidated financial statements.
Three Months Ended March 31, 2025
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$47,713 $15,653 $— $63,366 
Cost of goods sold11,628 4,647 — 16,275 
Gross profit36,085 11,006 — 47,091 
Gross margin76 %70 %*74 %
Sales and marketing6,872 3,402 1,183 11,457 
Research and development4,919 3,006 7,928 
Other segment items (1)(3)134 1,231 9,159 10,524 
Operating income (loss) (2)(4)24,160 3,367 (10,345)17,182 
Interest income, net692 
Other income (expense), net(9)
Income before income taxes$17,865 
Three Months Ended March 31, 2024
(In thousands, except percentages)Security SolutionsDigital AgreementsCorporate and OtherTotal
Revenue$50,429 $14,414 $— $64,843 
Cost of goods sold12,926 4,522 — 17,448 
Gross profit37,503 9,892 — 47,395 
Gross margin74 %69 %*73 %
Sales and marketing6,544 5,230 1,153 12,927 
Research and development4,000 4,231 28 8,259 
Other segment items (1)(3)1,081 696 10,322 12,099 
Operating income (loss) (2)(4)25,878 (265)(11,503)14,110 
Interest income, net101 
Other income (expense), net291 
Income before income taxes$14,502 
*Percentage not meaningful.
(1)     Security Solutions other segment items includes general and administrative expense and restructuring and other related charges for the three months ended March 31, 2025 and 2024.
(2)     Security Solutions operating income includes $0.2 million of total amortization and depreciation expense for both the three months ended March 31, 2025 and 2024.
Security Solutions operating income includes $0.2 million and $1.1 million of restructuring and other related charges for the three months ended March 31, 2025 and 2024, respectively.
(3)     Digital Agreements other segment items includes general and administrative expense, restructuring and other related charges, and amortization of intangibles for the three months ended March 31, 2025 and 2024.
(4) Digital Agreements operating income (loss) includes $1.7 million and $1.6 million of total amortization and depreciation expense for the three months ended March 31, 2025 and 2024, respectively.
Digital Agreements operating income (loss) includes $0.2 million and $0.1 million of restructuring and other related charges for the three months ended March 31, 2025 and 2024, respectively.
Information regarding geographic areas
The following tables illustrate the disaggregation of revenues by category and services, including a reconciliation of the disaggregated revenues to revenues from the Company’s two reportable operating segments for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
20252024
(In thousands)Security SolutionsDigital AgreementsSecurity SolutionsDigital Agreements
Subscription$28,072 $15,545 $26,182 $13,812 
Maintenance and support7,984 24 10,066 505 
Professional services and other (1)594 84 1,605 97 
Hardware products11,063 — 12,576 — 
Total Revenue$47,713 $15,653 $50,429 $14,414 
(1) Professional services and other includes perpetual software licenses revenue, which was immaterial for the three months ended March 31, 2025 and approximately 1% of total revenue for the three months ended March 31, 2024.