Segment information

3 Months Ended

Mar. 31, 2013

Segment information

Segment information

13. 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 $0.4 million which is included in “processing and services costs” for the three months ended March 31, 2013 and for the three months ended March 31, 2012 the amount of multi-currency cost of sales is immaterial , while 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 may include 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 March 31, 2013 and December 31, 2012 long-lived asset amounts are $10.1 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:

	Three months ended March 31,
	2013		2012
Net Revenue:
APAC	$	3,716,672	$	4,189,768
North America	1,461,101		969,585
CEMEA	2,652,956		2,363,272
Total multi-currency processing services revenue	7,830,729		7,522,625
Payment processing services revenue	4,255,334		4,158,311
Net revenue	$	12,086,063	$	11,680,936
Gross Profit:
APAC	$	3,684,004	$	4,189,768
North America	1,436,166		969,585
CEMEA	2,269,054		2,363,272
Total multi-currency processing services gross profit	7,389,224		7,522,625
Payment processing services gross profit	1,453,045		1,374,720
Total gross profit	$	8,842,269	$	8,897,345

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:

	Three months ended March 31,
	2013		2012
Multi-currency processing services revenue:
APAC:
Customer A	66	%	63	%
Customer E			13
North America:
Customer F	28		16
Customer G	36		53
Customer H			12
CEMEA:
Customer C	79		100
Customer I	21