Information about Operating Segments and Geographic Areas

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Information about Operating Segments and Geographic Areas

15. 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 three major product lines—third-party software, proprietary software and professional engineering service--each of which we consider to be operating and reportable segments. 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,
	2017			2016
Third-party software:
Revenue	$	65,755		$	80,231
Cost of revenue		55,161			67,853
Gross profit		10,594			12,378
Proprietary software:
Revenue		4,646			1,939
Cost of revenue		163			329
Gross profit		4,483			1,610
Professional Engineering Service:
Revenue		10,410			15,271
Cost of revenue		7,365			13,439
Gross profit		3,045			1,832
Total gross profit		18,122			15,820
Operating expenses		27,543			16,978
Other income, net		214			247
Income tax benefit (expense)		149			(141	)
Net loss	$	(9,058	)	$	(1,052	)

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):

	Year Ended December 31,
	2017		2016
Total revenue:
North America	$	76,062	$	92,299
Asia		1,644		2,024
Europe		3,105		3,118
Total revenue	$	80,811	$	97,441

	December 31,
	2017		2016
Long-lived assets:
North America	$	991	$	1,025
Asia		76		90
Europe		4,114		4,236
Total long-lived assets	$	5,181	$	5,351