Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Segment and Geographic Information [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company’s operating segments are significant strategic business units that offer different products and services.  The Company has two operating segments:  e-Commerce and Media.

The Company’s e-Commerce segment provides online sales of a variety of retail products of interest to technology professionals and technology enthusiasts and general consumers and the Media segment consists of web sites serving these communities.  The Company’s websites that comprise the Media segment include: SourceForge, Slashdot and Freecode.  Those corporate expenses that are not allocated to the individual operating segments and are not considered by the Company’s chief decision-making group in evaluating the performance of the operating segments are included in “Other”.

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies.  The Company’s chief decision-making group is the Office of the Chief Executive Officer which includes the Chief Executive Officer, the Chief Financial Officer. Chief Administrative Officer and the Chief Executive Officer of the Media and e-Commerce business units.  The Company’s chief decision-making group excludes any intersegment sales and assets when evaluating the performance of the segments.  The Company’s assets and liabilities are not allocated or reviewed by the chief decision-making group for either operating segment.  The depreciation of the Company’s property, equipment and leasehold improvements are allocated based on headcount, unless specifically identified by operating segment.

(in thousands)	e-Commerce			Media			Other			Total Company
Year ended December 31, 2011
Revenue from external customers	$	99,057		$	20,409		$	—		$	119,466
Cost of revenue	$	83,277		$	4,906		$	—		$	88,183
Gross margin	$	15,780		$	15,503		$	—		$	31,283
Loss from operations	$	(923	)	$	(339	)	$	—		$	(1,262	)
Depreciation and amortization	$	1,122		$	800		$	—		$	1,922
Year ended December 31, 2010
Revenue from external customers	$	76,335		$	18,284		$	—		$	94,619
Cost of revenue	$	62,630		$	6,610		$	—		$	69,240
Gross margin	$	13,705		$	11,674		$	—		$	25,379
Loss from operations	$	733		$	(5,144	)	$	—		$	(4,411	)
Depreciation and amortization	$	496		$	1,781		$	—		$	2,277
Year ended December 31, 2009
Revenue from external customers	$	49,091		$	16,486		$	—		$	65,577
Cost of revenue	$	38,151		$	6,953		$	—		$	45,104
Gross margin	$	10,940		$	9,533		$	—		$	20,473
Operating loss	$	2,787		$	(12,193	)	$	—		$	(9,406	)
Depreciation and amortization	$	145		$	2,535		$	(523	)	$	2,157

During the time period covered by the table above, the Company marketed its e-Commerce products through its online web site and its Media products in the United States through its direct sales force.  International Media sales were marketed through representatives based in the United Kingdom, Europe, Asia and Australia.  International revenue from the e-Commerce segment comprised approximately 14%, 18%, and 17%, total e-Commerce revenue for the year ended December 31, 2011, December 31, 2010, and December 31, 2009 respectively.  International revenue for the Media segment was less than 10% of total Media revenue for all periods presented.  International revenue consists of e-Commerce shipments outside the United States of America and revenue from Media customers located outside the United States of America.