Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Reconciliation of segment information to the totals reported in the accompanying consolidated financial statements

The tables below set forth information about the Company’s reportable operating segments for the three months ended March 31, 2023 and 2022, 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,
(In thousands, except percentages)	2023			2022
Digital Agreements
Revenue	$	11,552		$	13,301
Gross profit	$	8,448		$	10,286
Gross margin	73		%	77		%
Operating income (loss)	$	(6,033)		$	1,125

Security Solutions
Revenue	$	46,055		$	39,146
Gross profit	$	30,838		$	26,392
Gross margin	67		%	67		%
Operating income	$	15,631		$	7,689

Total Company:
Revenue	$	57,607		$	52,447
Gross profit	$	39,286		$	36,678
Gross margin	68		%	70		%

Statements of Operations reconciliation:
Segment operating income	$	9,598		$	8,814
Corporate operating expenses not allocated at the segment level	(17,728)			(18,057)
Operating loss	$	(8,130)		$	(9,243)
Interest income (expense), net	503			(17)
Other (expense) income, net	(40)			15,647
Income (loss) before income taxes	$	(7,667)		$	6,387

Reconciliation of the disaggregated revenues to revenues from our two operating segments

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, 2023 and 2022:


	Three Months Ended March 31,
	2023				2022
	Digital Agreements		Security Solutions		Digital Agreements		Security Solutions
(In thousands)
Subscription	$	10,348	$	19,608	$	11,671	$	11,598
Maintenance and support	996		10,165		1,352		10,594
Professional services and other (1)	208		1,416		278		1,603
Hardware products	—		14,866		—		15,351
Total Revenue	$	11,552	$	46,055	$	13,301	$	39,146

(1) Professional services and other includes perpetual software licenses revenue, which was less than 2% of total
revenue for the three months ended March 31, 2023 and 2022.