Note 9 - Information About Geographic Areas and Operating Segments

3 Months Ended

Mar. 31, 2021

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 March 31,
	2021			2020
Partner Solutions:
Revenue	$	8,795		$	15,905
Cost of revenue		7,459			13,156
Gross profit		1,336			2,749
Edge to Cloud:
Revenue		1,177			824
Cost of revenue		920			988
Gross profit		257			(164	)
Total gross profit		1,593			2,585
Operating expenses		2,444			3,024
Other income, net		(9	)		(35	)
Income tax (expense) benefit		—			—
Net loss	$	(860	)	$	(474	)

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 March 31,
	2021		2020
Total revenue:
North America	$	8,588	$	13,776
Asia		1,162		2,314
Europe		222		639
Total revenue	$	9,972	$	16,729

	March 31, 2021		December 31, 2020
Long-lived assets:
North America	$	1,542	$	1,179
Europe		171		179
Total long-lived assets	$	1,713	$	1,358

Long-lived assets increased due to additions of internally developed software during the quarter in North America.