Reportable Segments

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Reportable Segments

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 Singapore related primarily to end customers in Asia Pacific and Japan. Operations in Kuala Lumpur, Malaysia are allocated to the reportable segment of where the customer is located.

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,
	2013			2012			2013			2012
Net revenue
NALA	$	45,068		$	37,647		$	125,357		$	110,720
EMEA	15,625			14,159			51,383			45,425
APJ	5,789			7,284			18,560			20,213
Total net revenue	$	66,482		$	59,090		$	195,300		$	176,358
Direct profit contribution
NALA	$	23,612		$	20,928		$	67,222		$	60,101
EMEA	7,813			6,739			25,692			23,809
APJ	2,219			873			4,927			2,627
Total direct profit contribution	33,644			28,540			97,841			86,537
Adjustments:
Stock-based compensation	(802		)	(763		)	(2,222		)	(2,050		)
Other, net	(6,090		)	(3,231		)	(17,167		)	(9,131		)
Gross profit	$	26,752		$	24,546		$	78,452		$	75,356