Segment Information

6 Months Ended

Jun. 30, 2015

Segment Information [Abstract]

Segment Information

NOTE 9 — SEGMENT INFORMATION

We define operating segments as components of our enterprise for which separate financial information is reviewed regularly by the chief operating decision-makers to evaluate performance and to make operating decisions. We have identified our Chief Executive Officer and Vice President of Finance as our chief operating decision-makers (“CODM”). These chief operating decision makers review revenues by segment and review overall results of operations.

We currently operate our business as two operating segments based on revenue type:  license fees and services revenue, and customer support revenue (as shown on the consolidated statements of operations).  License fees and services (“L&S”) revenue represents the fees received from the license of software products and those services directly related to the delivery of the licensed products, such as fees for custom development and integration services.  Customer support (“CS”) revenue includes annual support fees, recurring maintenance fees, fees for maintenance upgrades and warranty services.  Warranty services that are similar to software maintenance services are typically bundled with a license sale. Total assets by segment have not been disclosed as the information is not available to the chief operating decision-makers.

Segment information is as follows (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
		2015		2014		2015		2014
Revenue
License fees and services	$	3,610	$	5,182	$	7,949	$	9,549
Customer support		2,461		2,757		4,782		4,972
Total revenue		6,071		7,939		12,731		14,521
Revenue less costs of revenue, excluding
depreciation and amortization
License fees and services		2,420		3,669		5,534		6,558
Customer support		2,129		2,269		4,062		4,064
		4,549		5,938		9,596		10,622
Unallocated Costs
Other operating expenses		3,501		3,219		7,006		6,596
Depreciation and amortization		107		76		227		145
Restructuring		-		26		-		237
Interest income		(4)		(4)		(9)		(7)
Interest expense		3		4		6		9
Other loss		-		27		-		27
Foreign currency exchange loss		(151)		76		(26)		172
Income from operations before income taxes	$	1,093	$	2,514	$	2,392	$	3,443

Geographic Regions

We are headquartered in Englewood, a suburb of Denver, Colorado. We use customer locations as the basis for attributing revenues to individual countries. We provide products and services on a global basis through our headquarters, our London-based Evolving Systems U.K. subsidiary and our San Francisco-based Evolving Systems Labs, Inc. subsidiary. Additionally, personnel in Bangalore, India provide software development services to our global operations. Financial information relating to operations by geographic region is as follows (in thousands):

	For the Three Months Ended June 30,
	2015						2014
Revenue		L&S		CS		Total		L&S		CS		Total
United Kingdom	$	423	$	425	$	848	$	855	$	516	$	1,371
Switzerland		595		136		731		128		129		257
Mexico		508		124		632		485		323		808
Nigeria		323		123		446		1,495		119		1,614
Saudi Arabia		78		-		78		172		42		214
Other		1,683		1,653		3,336		2,047		1,628		3,675
Total revenues	$	3,610	$	2,461	$	6,071	$	5,182	$	2,757	$	7,939

	For the Six Months Ended June 30,
	2015						2014
Revenue		L&S		CS		Total		L&S		CS		Total
United Kingdom	$	961	$	915	$	1,876	$	1,952	$	1,016	$	2,968
Switzerland		1,037		274		1,311		316		248		564
Nigeria		435		242		677		2,125		210		2,335
Mexico		824		241		1,065		1,074		437		1,511
Philippines		762		232		994		858		184		1,042
Other		3,930		2,878		6,808		3,224		2,877		6,101
Total revenues	$	7,949	$	4,782	$	12,731	$	9,549	$	4,972	$	14,521

		June 30,		December 31,
Long-lived assets, net		2015		2014
United States	$	1,926	$	1,998
United Kingdom		16,290		16,091
Other		141		188
	$	18,357	$	18,277