Reportable Segments

9 Months Ended

Sep. 30, 2012

Reportable Segments [Abstract]

Reportable Segments

Note 11 — 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 customers 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 September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net revenue
NALA	$	37,647		$	31,952		$	110,720		$	88,383
EMEA		14,159			12,365			45,425			41,612
APJ		7,284			5,771			20,213			14,727
Total net revenue	$	59,090		$	50,088		$	176,358		$	144,722
Direct profit contribution
NALA	$	20,928		$	18,263		$	60,101		$	48,765
EMEA		6,739			5,042			23,809			18,537
APJ		873			538			2,627			1,674
Total direct profit contribution		28,540			23,843			86,537			68,976
Adjustments:
Stock-based compensation		(763	)		(470	)		(2,050	)		(1,286	)
Overhead allocations		(5,998	)		(4,413	)		(16,933	)		(12,985	)
Other, net		2,767			3,094			7,802			7,618
Gross Profit	$	24,546		$	22,054		$	75,356		$	62,323