Segment and Geographical Information

12 Months Ended

Dec. 31, 2011

Segment and Geographical Information [Abstract]

Segment and Geographical Information

7. 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, 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 following table shows the revenues generated by each business unit (in thousands):

	Year Ended December 31,
	2011		2010		2009
Wireless	$	48,711	$	118,684	$	89,420
Productivity & Graphics		8,816		11,399		17,014
Corporate/Other		240		418		845
Total revenues		57,767		130,501		107,279
Cost of revenues		13,761		15,507		15,486
Gross profit	$	44,006	$	114,994	$	91,793

Revenues to three customers (Sprint, Verizon Wireless and AT&T) and their respective affiliates in the Wireless business segment accounted for 24.8%, 18.4% and 11.7%, respectively, of the Company’s total revenues for the fiscal year 2011. In 2010, our three largest customers (Verizon Wireless, Sprint and AT&T) accounted for 40.1%, 13.9% and 12.3%, respectively, of our total revenues. In 2009, our four largest customers (Verizon Wireless, Dell, Sprint and AT&T) accounted for 32.8%, 12.2%, 10.4% and 10.3%, respectively, of our total revenues. Our major customers could reduce their orders of our products in favor of a competitor’s product or for any other reason. The loss of any of our major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on our business.

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

	December 31, 2011			December 31, 2010
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 years ended December 31, 2011, 2010 and 2009, 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):

	Year ended December 31,
	2011		2010		2009
Americas	$	51,784	$	121,495	$	99,172
EMEA		3,171		7,117		4,402
Asia Pacific		2,812		1,889		3,705
Total revenues	$	57,767	$	130,501	$	107,279

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