Segment and Geographical Information

9 Months Ended

Sep. 30, 2011

Segment and Geographical Information [Abstract]

Segment and Geographical Information

14. Segment and Geographical Information

Segment Information

Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting. The Company has two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility. Wireless includes our connectivity and security management, mobile VPN, media and content management, device management, Push-To-Talk, Visual Voicemail, Visual Voicemail to Text, contact and calendar syncing and video content delivery and optimization solutions. Productivity & Graphics includes retail and direct sales of our compression and broad consumer-based software. “Corporate/Other” revenue includes the consulting portion of our services sector which has been de-emphasized and is no longer considered a strategic element of our future plans.

The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues.

The following table shows the revenues generated by each business unit (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	(unaudited)				(unaudited)
	2011		2010		2011		2010
Wireless	$	10,211	$	31,340	$	40,000	$	86,631
Productivity & Graphics		2,365		2,615		6,339		8,296
Corporate/Other		56		53		189		300
Total Revenues	$	12,632	$	34,008	$	46,528	$	95,227

Revenues to three customers and their respective affiliates in the Wireless business segment accounted for 24.8%, 20.6% and 11.6% of the Company’s total revenues for the three months ended September 30, 2011. Revenues to three customers and their respective affiliates in the Wireless business segment accounted for 41.7%, 15.0% and 11.9% of the Company’s total revenues for the three months ended September 30, 2010. Revenues to three customers and their respective affiliates in the Wireless business segment accounted for 23.5%, 19.6% and 11.9% of the Company’s total revenues for the nine months ended September 30, 2011. Revenues to three customers and their respective affiliates in the Wireless business segment accounted for 36.5%, 14.7% and 14.6% of the Company’s total revenues for the nine months ended September 30, 2010.

The following table shows the goodwill and intangible assets by each business unit (in thousands):

	September 30, 2011 (unaudited)		December 31, 2010 (audited)
Goodwill	$	—	$	84,616
Intangibles-net		—		17,136
Total Wireless		—		101,752
Goodwill		—		9,615
Intangibles-net		—		2,323
Total Productivity & Graphics		—		11,938
Total	$	—	$	113,690

Geographical Information

During the three and nine months ended September 30, 2011 and 2010, the Company operated in three geographic locations; the Americas, Asia Pacific, and EMEA (Europe, the Middle East, and Africa). Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(unaudited)				(unaudited)
Americas	$	11,153	$	32,384	$	42,085	$	88,169
EMEA		663		1,226		2,490		5,827
Asia Pacific		816		398		1,953		1,231
Total Revenues	$	12,632	$	34,008	$	46,528	$	95,227

The Company does not separately allocate specific assets to these geographic locations.