Segments

The Company has two reportable segments: disc publishing and enterprise content distribution software. The Company's disc publishing segment supplies customers in North America, Europe and Asia with industry-leading solutions that archive, distribute and protect content on CDs, DVDs and Blu-ray Discs. The Company’s enterprise content distribution software segment enables online distribution of content through live and on-demand streaming video as well as secure push-based content delivery to tablets, smart phones and personal computers through its enterprise video communications product line, acquired as part of the acquisition of Qumu, Inc.

Management evaluates segment performance based on revenue and operating income (loss). The measurement of operating income (loss) excludes interest income and expense, other non-operating items and income taxes. The operating income (loss) for the Company’s enterprise content distribution software and disc publishing segments include all the direct costs of each business. Beginning with the first quarter of fiscal 2013, the measurement of operating income (loss) by segment includes an allocation of corporate expenses incurred to support each reportable segment. Previously reported amounts included all corporate and other unallocated expenses in the disc publishing segment, a portion of which were incurred to support the enterprise content distribution segment. The Company revised the amounts previously reported as operating income (loss) by segment to align to the current period's presentation. This realignment resulted in $689,000 and $1,984,000 of corporate and other unallocated expenses being allocated from the disc publishing segment to the enterprise content distribution software segment for the three and nine months ended September 30, 2012, respectively, and had no effect on previously reported consolidated net sales or consolidated operating income (loss). The Company has not provided specific asset information by segment, as it is not regularly provided to the Company’s chief operating decision maker for review at a segment specific level.

Net revenue and operating income (loss) were as follows (in thousands):



Reportable Segments	Disc Publishing		Enterprise Content Distribution Software				Total
Three months ended September 30, 2013
Revenues	$	16,690	$	4,383			$	21,073
Operating income (loss)	2,552		(3,606		)	⁽¹⁾	(1,054		)
Three months ended September 30, 2012
Revenues	$	18,189	$	2,760			$	20,949
Operating income (loss)	2,431		(34,160		)	⁽²⁾	(31,729		)
Nine months ended September 30, 2013
Revenues	$	48,256	$	13,561			$	61,817
Operating income (loss)	4,641		(11,549		)	⁽¹⁾	(6,908		)
Nine months ended September 30, 2012
Revenues	$	53,176	$	5,518			$	58,694
Operating income (loss)	5,799		(44,230		)	⁽²⁾	(38,431		)


⁽¹⁾	Operating loss for the enterprise content distribution software segment for the three and nine months ended September 30, 2013 includes amortization expense of $0.3 million and $0.9 million, respectively, for amortization of intangible assets established as part of the acquisition of Qumu, Inc.


⁽²⁾	Operating loss for the enterprise content distribution software segment for the three and nine months ended September 30, 2012 includes recognized asset impairment charges of $22.2 million of goodwill and $7.3 million of other intangible assets.