Segment information

12 Months Ended

Dec. 31, 2013

Segment information

Segment information

17. Segment information

General information

        The segment and geographic information provided in the table below is being reported consistent with the Company's method of internal reporting. Operating segments are defined as components of an enterprise for which separate financial information is available and which is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker, or CODM, reviews net revenue and gross profit by service by geographical region. The Company operates in two reportable segments; multi-currency processing services and payment processing services.

Information about revenue, profit and assets

        The CODM evaluates performance and allocates resources based on net revenue and gross profit of each segment. For purposes of analyzing segments, gross profit of the multi-currency processing services segment is equal to net revenue less multi-currency cost of sales of $1.7 million which is included in "processing and services costs" for the year ended December 31, 2013 and for the year ended December 31, 2012 and 2011, the amount of multi-currency cost of sales is immaterial. The gross profit for the payment processing services segment includes net revenue of the segment less the cost of revenue component "payment processing services fees", which includes interchange and card network fees and assessments. Net revenue and gross profit by geographical region is based upon where the transaction originated. Lastly, the Company does not evaluate performance or allocate resources using segment asset data. Long-lived assets are primarily located in North America and Europe and as of December 31, 2013 and December 31, 2012, long-lived asset amounts are $10.3 million and $9.8 million, respectively.

        The Company conducts its business primarily in three geographical regions: Asia Pacific ("APAC"), North America, and Central Europe, Middle East and Africa ("CEMEA"). The following table provides revenue concentration by geographic region. Analysis of revenue by segment and geographical region and reconciliations to consolidated revenue and gross profit are as follows:

	Year ended December 31,
	2013		2012		2011
Net Revenue:
APAC	$	15,666,192	$	16,248,880	$	18,337,513
North America		6,165,431		5,000,064		3,991,374
CEMEA		7,981,826		7,558,146		4,909,875
Total multi-currency processing services revenue		29,813,449		28,807,090		27,238,762
Payment processing services revenue		16,752,616		14,770,926		14,619,404
Net revenue	$	46,566,065	$	43,578,016	$	41,858,166
Gross Profit:
APAC	$	15,572,813	$	16,248,880	$	18,337,513
North America		6,045,441		5,000,064		3,991,374
CEMEA		6,515,668		7,558,146		4,909,875
Total multi-currency processing services gross profit		28,133,922		28,807,090		27,238,762
Payment processing services gross profit		5,516,354		3,827,636		2,942,392
Total gross profit	$	33,650,276	$	32,634,726	$	30,181,154

        Payment processing service revenue and gross profit is the result of transactions that primarily originated in North America and no individual merchant of the payment processing segment was greater than 10% of segment revenue.

        Concentration of revenue by customer by geographical region:

	Year ended December 31,
	2013			2012			2011
Multi-currency processing services revenue:
APAC:
Customer A		63	%		62	%		63	%
Customer I		*			12			13
North America:
Customer E		25			18			11
Customer F		32			44			54
Customer G		11			11			21
CEMEA:
Customer C		71			97			100
Customer H		28			*			*

*

Revenue less than 10%.