Reportable Segments

6 Months Ended

Jun. 30, 2011

Reportable Segments

Reportable Segments

Note 12 — Reportable Segments

The Company's operations are principally managed on a geographic basis and are comprised of three reportable and operating segments: NALA, EMEA and APJ, as defined below.

The Company reports segment information based on the management approach. The management approach designates the internal reporting used by the Company's Chief Operating Decision Maker ("CODM"), for making decisions and assessing performance as the source of the Company's reportable segments. The CODM is the Company's Chief Executive Officer. The CODM allocates resources to and assesses the performance of each of the operating segment using information about its revenue and direct profit contribution, which is management's measure of segment profitability. Management has determined that the Company's reportable and operating segments are as follows, based on the information used by the CODM:

NALA —Includes operations from offices in San Francisco, California; Denver, Colorado and Nashville, Tennessee related primarily to end customer in North America.

EMEA —Includes operations from offices in Liverpool, United Kingdom and Dublin, Ireland related primarily to end customers in Europe.

APJ —Includes operations from offices in Kuala Lumpur, Malaysia and Singapore related primarily to end customers in Asia Pacific and Japan.

The Company does not allocate sales and marketing, research and development, or general and administrative expenses to its geographic regions because management does not include the information in its measurement of the performance of the operating segments. The Company excludes certain items such as stock-based compensation, overhead allocations and other items from direct profit contribution. Revenue for a particular geography reflects fees the Company earns from its customers for sales and renewals of maintenance, support and subscription contracts on their behalf and managed from the Company's sales center in that geography.

Summarized financial information by geographic location based on the Company's internal management reporting and as utilized by the Company's CODM, is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net revenue
NALA	$	28,686		$	26,304		$	56,431		$	46,527
EMEA		14,254			9,931			29,247			20,797
APJ		5,572			1,741			8,956			2,828
Total net revenue	$	48,512		$	37,976		$	94,634		$	70,152
Direct profit contribution
NALA	$	15,699		$	14,517		$	30,502		$	24,270
EMEA		6,053			4,295			13,495			8,453
APJ		1,116			478			1,136			814
Total direct profit contribution		22,868			19,290			45,133			33,537
Adjustments:
Stock-based compensation		(447	)		(299	)		(816	)		(573	)
Overhead allocations		(4,507	)		(3,322	)		(8,573	)		(6,811	)
Other		2,369			1,132			4,525			2,053
Gross Profit	$	20,283		$	16,801		$	40,269		$	28,206