Information about Operating Segments and Geographic Areas

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Information about Operating Segments and Geographic Areas

14. 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, 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. The following table sets forth profit and loss information about our segments (in thousands):

	Year Ended
	December 31,
	2016			2015
Software
Revenue	$	82,170		$	86,208
Cost of revenue		68,182			70,937
Gross profit		13,988			15,271
Professional Engineering Services
Revenue		15,271			20,393
Cost of revenue		13,439			15,194
Gross profit		1,832			5,199
Total gross profit		15,820			20,470
Operating expenses		16,978			14,039
Other income, net		247			132
Income tax expense		(141	)		(470	)
Net income (loss)	$	(1,052	)	$	6,093

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):

	Year Ended
	December 31,
	2016		2015
Total revenue:
North America	$	92,299	$	97,858
Asia		2,024		3,405
Europe		3,118		5,338
Total revenue	$	97,441	$	106,601

	December 31,
	2016		2015
Long-lived assets:
North America	$	1,025	$	1,353
Asia		90		247
Europe		4,236		4,345
Total long-lived assets	$	5,351	$	5,945