Information about Geographic Areas and Operating Segments

3 Months Ended

Mar. 31, 2019

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 March 31,
	2019			2018
Third-party software:
Revenue	$	13,101		$	16,064
Cost of revenue		11,149			13,354
Gross profit		1,952			2,710
Proprietary software:
Revenue		251			1,795
Cost of revenue		213			41
Gross profit		38			1,754
Professional Engineering Service:
Revenue		1,744			2,819
Cost of revenue		1,343			2,083
Gross profit		401			736
Total gross profit		2,391			5,200
Operating expenses		5,270			7,678
Other income, net		33			44
Income tax (expense) benefit		—			—
Net loss	$	(2,846	)	$	(2,434	)

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 March 31,
	2019		2018
Total revenue:
North America	$	14,528	$	19,289
Asia		107		450
Europe		461		939
Total revenue	$	15,096	$	20,678

	March 31, 2019		December 31, 2018
Long-lived assets:
North America	$	1,545	$	1,578
Asia		83		91
Europe		258		4,023
Total long-lived assets	$	1,886	$	5,692