Note 15 - Information About Operating Segments and Geographic Areas

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. Information about Operating Segments and Geographic Areas

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):

	Year Ended December 31,
	2020			2019
Partner Solutions:
Revenue	$	42,257		$	50,628
Cost of revenue		35,171			43,198
Gross profit		7,086			7,430
Edge to Cloud:
Revenue		4,887			8,655
Cost of revenue		4,247			5,989
Gross profit		640			2,666
Total gross profit		7,726			10,096
Operating expenses		9,580			19,410
Other income, net		(35	)		149
Income tax expense		-			(16	)
Net loss	$	(1,889	)	$	(9,181	)

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

	Year Ended December 31,
	2020		2019
Total revenue:
North America	$	40,339	$	50,110
Asia		4,750		7,150
Europe		2,055		2,023
Total revenue	$	47,144	$	59,283

	December 31,
	2020		2019
Long-lived assets:
North America	$	1,179	$	2,016
Asia		178		177
Europe		-		340
Total long-lived assets	$	1,358	$	2,533