(17)	Segments

	As part of its integration of Qumu's enterprise video communications product line and preparation for the introduction in the second quarter of 2012 of Signal, its internally developed online publishing solution, the Company modified its reporting structure during the first quarter of 2012 to align with changes in how the business is managed. Reportable segments are defined primarily by the nature of the Company's products and markets. The Company was previously organized under one reportable segment which consisted of its disc publishing business. As a result of the changes in the business described above, the Company has identified two reportable segments: disc publishing and online publishing. The Company's disc publishing business 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 online publishing business enables online distribution of content through two delivery systems, 1) live and on-demand streaming video through its enterprise video communications product line, acquired as part of the acquisition of Qumu, and 2) secure push-based content delivery to personal computers, tablets and smart phones through its Signal online publishing solution. The combination of disc publishing and online publishing enables businesses to securely deliver their videos, documents, audio files and images in today's multi-platform, multi-device world.

	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 online publishing and disc publishing segments include all the direct costs of each business. Additionally, the disc publishing segment includes all corporate and other unallocated amounts, a portion of which were incurred to support the online publishing segment. 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		Online Publishing			Total
Three months ended June 30, 2012
Revenues	$	16,903	$	1,381		$	18,284
Operating income (loss)		660		(4,387	)⁽¹⁾		(3,727	)
Three months ended June 30, 2011
Revenues	$	20,194	$	—		$	20,194
Operating income (loss)		2,438		(618	)⁽²⁾		1,820
Six months ended June 30, 2012
Revenues	$	34,987	$	2,758		$	37,745
Operating income (loss)		2,073		(8,775	)⁽¹⁾		(6,702	)
Six months ended June 30, 2011
Revenues	$	41,650	$	—		$	41,650
Operating income (loss)		5,342		(1,196	)⁽²⁾		4,146


	(1)	Operating loss for the online publishing segment for the three and six months ended June 30, 2012 includes amortization expense of $480,000 and $943,000 for amortization of intangible assets established as part of the Qumu acquisition. See Note 7, "Goodwill and Intangible Assets," for additional information regarding the Company's intangible assets.
	(2)	Operating loss for the online publishing segment for the three and six months ended June 30, 2011 consists of expenses incurred to develop and support the Company's Signal online publishing solution.

Note: The Company's contracted commitment backlog for the online publishing segment aggregated $6.6 million as of June 30, 2012. Associated revenues will be recognized over the next several quarters.