Note 9 - Information About Geographic Areas and Operating Segments

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9.

Information about Geographic Areas and Operating Segments

Our chief operating decision-makers (i.e. our Chief Executive Officer and certain direct reports) review financial information presented on a consolidated basis, accompanied by disaggregated information for purposes of allocating resources and evaluating financial performance. There are

no

segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, or planning for levels or components below the consolidated unit level. We operate within a single industry segment of computer software and services.

We have

two

 major product lines, Partner Solutions and Edge to Cloud, each of which we consider to be operating and reportable segments. We do

not

allocate costs other than direct cost of goods sold to the segments or produce segment income statements, and we do

not

produce asset information by reportable segment. The following table sets forth profit and loss information about our segments (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Partner Solutions:
Revenue	$	9,145		$	12,556		$	33,160		$	37,341
Cost of revenue		7,402			10,762			27,502			31,834
Gross profit		1,743			1,794			5,658			5,507
Edge to Cloud:
Revenue		1,275			2,085			2,913			6,576
Cost of revenue		1,128			1,247			3,050			4,637
Gross profit		147			838			(137	)		1,939
Total gross profit		1,890			2,632			5,521			7,446
Operating expenses		2,028			3,761			7,173			15,383
Other income, net		2			22			(31	)		116
Income tax (expense) benefit		—			—			—			—
Net loss	$	(136	)	$	(1,107	)	$	(1,683	)	$	(7,821	)

Revenue by geographic area is based on the sales region of the customer. The following tables set forth total revenue and long-lived assets by geographic area (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Total revenue:
North America	$	8,919	$	12,714	$	30,449	$	37,619
Asia		716		1,586		3,805		4,735
Europe		785		341		1,819		1,563
Total revenue	$	10,420	$	14,641	$	36,073	$	43,917

	September 30, 2020		December 31, 2019
Long-lived assets:
North America	$	1,823	$	2,016
Asia		—		177
Europe		171		340
Total long-lived assets	$	1,994	$	2,533

Long-lived assets decreased due to utilization of ROU leased assets in North America and from retirement of ROU leased assets in Asia due to closure of our Taiwan office.