Information about Geographic Areas and Operating Segments

3 Months Ended

Mar. 31, 2018

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 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):  

	Three Months Ended March 31,
	2018			2017
Third-party software:
Revenue	$	16,064		$	16,797
Cost of revenue		13,354			14,082
Gross profit		2,710			2,715
Proprietary software:
Revenue		1,795			2,654
Cost of revenue		41			32
Gross profit		1,754			2,622
Professional Engineering Service:
Revenue		2,819			3,390
Cost of revenue		2,083			2,474
Gross profit		736			916
Total gross profit		5,200			6,253
Operating expenses		7,678			6,212
Other income, net		44			55
Income tax benefit		—			106
Net income (loss)	$	(2,434	)	$	202

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,
	2018		2017
Total revenue:
North America	$	19,289	$	21,770
Asia		450		249
Europe		939		822
Total revenue	$	20,678	$	22,841

	March 31, 2018		December 31, 2017
Long-lived assets:
North America	$	986	$	991
Asia		94		76
Europe		4,110		4,114
Total long-lived assets	$	5,190	$	5,181