Information about Geographic Areas and Operating Segments

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Software:
Revenue	$	17,440		$	19,216		$	52,877		$	58,118
Cost of revenue		13,653			15,281			40,909			47,901
Gross profit		3,787			3,935			11,968			10,217
Professional Engineering Service:
Revenue		2,213			3,251			8,465			12,526
Cost of revenue		1,620			3,509			5,927			10,877
Gross profit		593			(258	)		2,538			1,649
Total gross profit		4,380			3,677			14,506			11,866
Operating expenses		6,926			4,092			19,630			11,717
Other income, net		34			128			148			204
Income tax benefit (expense)		44			181			150			(144	)
Net income (loss)	$	(2,468	)	$	(106	)	$	(4,826	)	$	209

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 September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Total revenue:
North America	$	17,982	$	20,917	$	57,480	$	66,275
Asia		875		1,018		1,429		1,847
Europe		796		532		2,433		2,522
Total revenue	$	19,653	$	22,467	$	61,342	$	70,644

	September 30, 2017		December 31, 2016
Long-lived assets:
North America	$	1,005	$	1,025
Asia		78		90
Europe		4,143		4,236
Total long-lived assets	$	5,226	$	5,351