Information about Operating Segments and Geographic Areas

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Information about Operating Segments and Geographic Areas

14. 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,
	2018			2017
Third-party software:
Revenue	$	61,159		$	65,755
Cost of revenue		51,408			55,161
Gross profit		9,751			10,594
Proprietary software:
Revenue		3,954			4,646
Cost of revenue		394			163
Gross profit		3,560			4,483
Professional Engineering Service:
Revenue		8,301			10,410
Cost of revenue		6,102			7,365
Gross profit		2,199			3,045
Total gross profit		15,510			18,122
Operating expenses		29,441			27,543
Other income, net		207			214
Income tax (expense) benefit		(13	)		149
Net loss	$	(13,737	)	$	(9,058	)

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,
	2018		2017
Total revenue:
North America	$	69,088	$	76,062
Asia		1,271		1,644
Europe		3,055		3,105
Total revenue	$	73,414	$	80,811

	December 31,
	2018		2017
Long-lived assets:
North America	$	1,578	$	991
Asia		91		76
Europe		4,023		4,114
Total long-lived assets	$	5,692	$	5,181