Information about Operating Segments and Geographic Areas

12 Months Ended

Dec. 31, 2019

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. Effective as of July 1, 2019, we made the following changes to our operating segments:

• Our Third-Party Software operating segment was renamed to Partner Solutions;

• Our Professional Engineering Service operating segment was renamed to Edge to Cloud; and

• We no longer present separate information for the Proprietary Software operating segment. Results are no longer quantifiably significant, nor does management view the segment as of continuing significance after deciding to stop marketing of DataV as an IoT platform in the second quarter of 2019. Results for the Proprietary Software segment are now combined with the Edge to Cloud segment as part of continuing operations, with prior period segment results recast to reflect our reporting segments on a comparable basis.

As of July 1, 2019, we have two major product lines – Partner Solutions and Edge to Cloud– 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):

	Year Ended December 31,
	2019			2018
Partner Solutions:
Revenue	$	50,628		$	61,159
Cost of revenue		43,198			51,408
Gross profit		7,430			9,751
Edge to Cloud:
Revenue		8,655			12,255
Cost of revenue		5,989			6,496
Gross profit		2,666			5,759
Total gross profit		10,096			15,510
Operating expenses		19,410			29,441
Other income, net		149			207
Income tax expense		(16	)		(13	)
Net loss	$	(9,181	)	$	(13,737	)

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,
	2019		2018
Total revenue:
North America	$	50,110	$	69,088
Asia		7,150		1,271
Europe		2,023		3,055
Total revenue	$	59,283	$	73,414

	December 31,
	2019		2018
Long-lived assets:
North America	$	2,016	$	1,578
Asia		177		91
Europe		340		322
Total long-lived assets	$	2,533	$	1,991