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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
As of March 31, 2023, the Company operates and reports its results in two reportable segments: Intellectual Property Operations and Industrial Operations.
The Company reports segment information based on the management approach and organizes its businesses based on products and services. The management approach designates the internal reporting used by the chief operating decision maker for decision making and performance assessment as the basis for determining the Company’s reportable segments. The performance measure of the Company’s reportable segments is primarily income or (loss) from operations. Income or (loss) from operations for each segment includes all revenues, cost of revenues, gross profit and other operating expenses directly attributable to the segment. Other than the Company's equity securities investments, specific asset information is not included in managements review at this time.
The Company’s Intellectual Property Operations segment invests in IP and related absolute return assets, and engages in the licensing and enforcement of patented technologies. Through our Patent Licensing, Enforcement and Technologies Business we are a principal in the licensing and enforcement of patent portfolios, with our operating subsidiaries obtaining the rights in the patent portfolio or purchasing the patent portfolio outright. While we, from time to time, partner with inventors and patent owners, from small entities to large corporations, we assume all responsibility for advancing operational expenses while pursuing a patent licensing and enforcement program. When applicable, we share net licensing revenue with our patent partners as that program matures, on a prearranged and negotiated basis. We may also provide upfront capital to patent owners as an advance against future licensing revenue. Currently, on a consolidated basis, our operating subsidiaries own or control the rights to multiple patent portfolios, which include U.S. patents and certain foreign counterparts, covering technologies used in a variety of industries. We generate revenues and related cash flows from the granting of IP rights for the use of patented technologies that our operating subsidiaries control or own.
The Company’s Industrial Operations segment generates operating income by designing and manufacturing printers and consumable products for various industrial printing applications. Printers consist of hardware and embedded software and may be sold with maintenance service agreements. Consumable products include inked ribbons which are used in Printronix’s printers. Printronix’s products are primarily sold through channel partners, such as dealers and distributors, to end-users.
The Company's segment information is as follows:
Three Months Ended March 31,
20232022
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues:
License fees$4,176 $— $4,176 $2,615 $— $2,615 
Printers and parts— 4,464 4,464 — 4,254 4,254 
Consumable products— 5,170 5,170 — 5,384 5,384 
Services— 993 993 — 1,254 1,254 
Total revenues4,176 10,627 14,803 2,615 10,892 13,507 
Cost of revenues:
Inventor royalties221 — 221 170 — 170 
Contingent legal fees532 — 532 549 — 549 
Litigation and licensing expenses1,384 — 1,384 1,244 — 1,244 
Amortization of patents2,601 — 2,601 2,601 — 2,601 
Cost of sales— 5,220 5,220 — 4,192 4,192 
Total cost of revenues4,738 5,220 9,958 4,564 4,192 8,756 
Segment gross profit(562)5,407 4,845 (1,949)6,700 4,751 
Other operating expenses:
Engineering and development expenses— 216 216 — 190 190 
Sales and marketing expenses— 1,913 1,913 — 2,016 2,016 
Amortization of intangible assets— 433 433 — 433 433 
General and administrative expenses1,897 2,285 4,182 1,716 2,422 4,138 
Total other operating expenses1,897 4,847 6,744 1,716 5,061 6,777 
Segment operating (loss) income$(2,459)$560 (1,899)$(3,665)$1,639 (2,026)
Parent general and administrative expenses7,425 6,482 
Operating loss(9,324)(8,508)
Total other (expense) income21,254 (79,636)
(Loss) income before income taxes$11,930 $(88,144)
March 31, 2023December 31, 2022
(In thousands)
Equity securities investments:
Equity securities$60,724 $61,608 
Equity securities without readily determinable fair value5,816 5,816 
Equity method investments30,934 30,934 
Total parent equity securities investments97,474 98,358 
Other parent assets235,144 156,394 
Segment total assets:
Intellectual property operations171,639 176,119 
Industrial operations52,347 52,057 
Total assets$556,604 $482,928 
The Company's revenues and long-lived tangible assets by geographic area are presented below. Intellectual Property Operations revenues are attributed to licensees domiciled in foreign jurisdictions. Printronix's net sales to external customers are attributed to geographic areas based upon the final destination of products shipped. The Company, primarily through its Printronix subsidiary, has identified three global regions for marketing its products and services: Americas, Europe, Middle East and Africa, and Asia-Pacific. Assets are summarized based on the location of held assets.
Three Months Ended March 31,
20232022
Intellectual Property OperationsIndustrial OperationsTotalIntellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Revenues by geographic area:
United States$673 $4,234 $4,907 $2,097 $3,849 $5,946 
Canada and Latin America501 219 720 6 372 378 
Total Americas1,174 4,453 5,627 2,103 4,221 6,324 
Europe, Middle East and Africa— 2,965 2,965 500 2,508 3,008 
China3,000 843 3,843 — 1,133 1,133 
India— 828 828 — 1,749 1,749 
Asia-Pacific, excluding China and India2 1,538 1,540 12 1,281 1,293 
Total Asia-Pacific3,002 3,209 6,211 12 4,163 4,175 
Total revenues$4,176 $10,627 $14,803 $2,615 $10,892 $13,507 
March 31, 2023
Intellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$290 $255 $545 
Malaysia— 2,543 2,543 
Other foreign countries— 187 187 
Total$290 $2,985 $3,275 
December 31, 2022
Intellectual Property OperationsIndustrial OperationsTotal
(In thousands)
Long-lived tangible assets by geographic area:
United States$324 $302 $626 
Malaysia— 2,703 2,703 
Other foreign countries— 208 208 
Total$324 $3,213 $3,537