Note 9 - Information About Geographic Areas and Operating Segments

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Partner Solutions:
Revenue	$	9,960		$	8,110		$	18,755		$	24,015
Cost of revenue		8,578			6,944			16,037			20,100
Gross profit		1,382			1,166			2,718			3,915
Edge to Cloud:
Revenue		711			814			1,888			1,638
Cost of revenue		901			934			1,821			1,922
Gross profit		(190	)		(120	)		67			(284	)
Total gross profit		1,192			1,046			2,785			3,631
Operating expenses		2,513			2,121			4,957			5,145
Other income (expense), net		1,614			2			1,605			(33	)
Income tax benefit (expense)		—			—			—			—
Net income (loss)	$	293		$	(1,073	)	$	(567	)	$	(1,547	)

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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Total revenue:
North America	$	8,221	$	7,754	$	16,809	$	21,530
Europe		138		395		359		1,034
Asia		2,312		775		3,475		3,089
Total revenue	$	10,671	$	8,924	$	20,643	$	25,653

	June 30, 2021		December 31, 2020
Long-lived assets:
North America	$	1,666	$	1,179
Europe		171		179
Total long-lived assets	$	1,837	$	1,358

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