Information about Geographic Areas and Operating Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Information about Geographic Areas and Operating Segments

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, 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 customization and 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):  

	Three Months Ended March 31,
	2017		2016
Software
Revenue	$	19,451	$	20,167
Cost of revenue		14,114		17,161
Gross profit		5,337		3,006
Professional Engineering Services
Revenue		3,390		5,272
Cost of revenue		2,474		3,982
Gross profit		916		1,290
Total gross profit		6,253		4,296
Operating expenses		6,212		3,647
Other income, net		55		21
Income tax benefit (expense)		106		(170	)
Net income	$	202	$	500

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):  

	Three Months Ended March 31,
	2017		2016
Total revenue:
North America	$	21,770	$	24,067
Asia		249		275
Europe		822		1,097
Total revenue	$	22,841	$	25,439

	March 31, 2017		December 31, 2016
Long-lived assets:
North America	$	989	$	1,025
Asia		90		90
Europe		4,232		4,236
Total long-lived assets	$	5,311	$	5,351