Segment and Geographic Information

9 Months Ended

Sep. 30, 2011

Segment and Geographic Information

10.  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:  Media and E-commerce.

The Company’s Media segment consists of web sites serving technology professionals and technology enthusiasts and the Company’s E-commerce segment provides online sales of a variety of retail products of interest to these communities and general consumers.  The Company’s websites that comprise the Media segment include: SourceForge, Slashdot and Freecode.

(in thousands)	E-Commerce			Media			Total Company
Three Months Ended September 30, 2011
Revenue from external customers	$	14,693		$	5,007		$	19,700
Cost of revenue	$	13,414		$	1,193		$	14,607
Gross margin	$	1,279		$	3,814		$	5,093
Loss from operations	$	(2,587	)	$	(56	)	$	(2,643	)
Depreciation and amortization	$	233		$	198		$	431
Three Months Ended September 30, 2010
Revenue from external customers	$	10,646		$	4,013		$	14,659
Cost of revenue	$	10,178		$	1,693		$	11,871
Gross margin	$	468		$	2,320		$	2,788
Loss from operations	$	(2,553	)	$	(1,257	)	$	(3,810	)
Depreciation and amortization	$	129		$	485		$	614
Nine Months Ended September 30, 2011
Revenue from external customers	$	44,217		$	15,470		$	59,687
Cost of revenue	$	40,263		$	3,999		$	44,262
Gross margin	$	3,954		$	11,471		$	15,425
Operating loss	$	(6,684	)	$	(522	)	$	(7,206	)
Depreciation and amortization	$	703		$	784		$	1,487
Nine Months Ended September 30, 2010
Revenue from external customers	$	31,588		$	13,024		$	44,612
Cost of revenue	$	27,788		$	5,269		$	33,057
Gross margin	$	3,800		$	7,755		$	11,555
Operating loss	$	(3,786	)	$	(5,387	)	$	(9,173	)
Depreciation and amortization	$	248		$	1,434		$	1,682

During the time period covered by the table above, the Company marketed its Media products in the United States through its direct sales force. ThinkGeek products were marketed through its online web site and with respect to international Media sales, through its subsidiary in the United Kingdom and representatives based in the United Kingdom, Europe and Australia.