Information about Geographic Areas and Operating Segments

3 Months Ended

Mar. 31, 2020

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 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):

	Three Months Ended March 31,
	2020			2019
Partner Solutions:
Revenue	$	15,905		$	13,101
Cost of revenue		13,156			11,149
Gross profit		2,749			1,952
Edge to Cloud:
Revenue		824			1,995
Cost of revenue		988			1,556
Gross profit		(164	)		439
Total gross profit		2,585			2,391
Operating expenses		3,024			5,270
Other income, net		(35	)		33
Income tax (expense) benefit		—			—
Net loss	$	(474	)	$	(2,846	)

Revenue by geographic area 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,
	2020		2019
Total revenue:
North America	$	13,776	$	14,528
Asia		2,314		107
Europe		639		461
Total revenue	$	16,729	$	15,096

	March 31, 2020		December 31, 2019
Long-lived assets:
North America	$	1,688	$	2,016
Asia		—		177
Europe		275		340
Total long-lived assets	$	1,963	$	2,533

Long-lived assets decreased due to utilization of ROU leased assets in North America and from retirement of ROU leased assets in Asia due to closure of our Taiwan office.