Information about Geographic Areas and Operating Segments

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Software
Revenue	$	15,986		$	18,735		$	35,437		$	38,902
Cost of revenue		13,142			15,459			27,256			32,620
Gross profit		2,844			3,276			8,181			6,282
Professional Engineering Services
Revenue		2,862			4,003			6,252			9,275
Cost of revenue		1,833			3,386			4,307			7,368
Gross profit		1,029			617			1,945			1,907
Total gross profit		3,873			3,893			10,126			8,189
Operating expenses		6,492			3,978			12,704			7,625
Other income, net		59			55			114			76
Income tax benefit (expense)		-			(155	)		106			(325	)
Net income (loss)	$	(2,560	)	$	(185	)	$	(2,358	)	$	315

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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Total revenue:
North America	$	17,728	$	21,291	$	39,498	$	45,359
Asia		306		554		556		828
Europe		814		893		1,635		1,990
Total revenue	$	18,848	$	22,738	$	41,689	$	48,177

	June 30, 2017		December 31, 2016
Long-lived assets:
North America	$	1,064	$	1,025
Asia		83		90
Europe		4,171		4,236
Total long-lived assets	$	5,318	$	5,351