Information about Geographic Areas and Operating Segments

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Information about Geographic Areas and Operating Segments

8. 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, software and professional engineering services, each of which we consider to be an operating and reportable segment. Software includes third-party software and proprietary software sales, and professional engineering services includes consulting, programming and software implementation revenue. We do not allocate costs other than direct cost of goods sold to the segments or produce segment income statements. We do not produce asset information by reportable segment and it is not presented here.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Software
Revenue	$	19,216		$	21,215		$	58,118		$	66,679
Cost of revenue		15,281			17,698			47,901			54,732
Gross profit		3,935			3,517			10,217			11,947
Professional Engineering Services
Revenue		3,251			5,220			12,526			14,894
Cost of revenue		3,509			3,864			10,877			11,287
Gross profit (loss)		(258	)		1,356			1,649			3,607
Total gross profit		3,677			4,873			11,866			15,554
Operating expenses		4,092			3,486			11,717			10,420
Other income, net		128			32			204			124
Income tax benefit (expense)		181			(174	)		(144	)		(305	)
Net income (loss)	$	(106	)	$	1,245		$	209		$	4,953

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Total revenue:
North America	$	20,917	$	23,654	$	66,275	$	74,415
Asia		1,018		1,055		1,847		3,043
Europe		532		1,726		2,522		4,115
Total revenue	$	22,467	$	26,435	$	70,644	$	81,573

	September 30, 2016		December 31, 2015
Long-lived assets:
North America	$	981	$	1,353
Asia		264		247
Europe		4,266		4,345
Total long-lived assets	$	5,511	$	5,945