Information about Geographic Areas and Operating Segments

9 Months Ended

Sep. 30, 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, and we do not produce asset information by reportable segment. The following table sets forth profit and loss information about our segments (in thousands):  

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Third-party software:
Revenue	$	14,241		$	16,240		$	47,297		$	48,542
Cost of revenue		12,003			13,619			39,837			40,804
Gross profit		2,238			2,621			7,460			7,738
Proprietary software:
Revenue		796			1,200			2,872			4,335
Cost of revenue		111			34			252			105
Gross profit		685			1,166			2,620			4,230
Professional Engineering Service:
Revenue		1,657			2,213			6,406			8,465
Cost of revenue		1,221			1,620			4,666			5,927
Gross profit		436			593			1,740			2,538
Total gross profit		3,359			4,380			11,820			14,506
Operating expenses		5,491			6,926			20,148			19,630
Other income, net		65			34			156			148
Income tax benefit (expense)		(20	)		44			(32	)		150
Net loss	$	(2,087	)	$	(2,468	)	$	(8,204	)	$	(4,826	)

Revenue by geography is based on the sales region of the customer. The following tables set forth total revenue and long-lived assets by geographic area (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Total revenue:
North America	$	15,441	$	17,982	$	52,909	$	57,480
Asia		579		875		1,164		1,429
Europe		674		796		2,502		2,433
Total revenue	$	16,694	$	19,653	$	56,575	$	61,342

	September 30, 2018		December 31, 2017
Long-lived assets:
North America	$	1,388	$	991
Asia		100		76
Europe		4,051		4,114
Total long-lived assets	$	5,539	$	5,181