Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2012

Segment, Customer Concentration and Geographical Information [Abstract]

Segment, Customer Concentration and Geographical Information

11. Segment, Customer Concentration 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 connection management, mobile VPN, media and content management, device management, Push-To-Talk, Visual Voicemail, Voicemail to Text, video content delivery and network traffic 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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Wireless	$	8,731	$	13,808	$	17,306	$	29,789
Productivity & Graphics		1,395		2,232		2,870		3,974
Corporate/Other		45		65		109		133
Total revenues	$	10,171	$	16,105	$	20,285	$	33,896

Customer Concentration Information

Revenues to two customers and their respective affiliates in the Wireless business segment accounted for 39.9% and 15.6% of the Company’s total revenues for the three months ended June 30, 2012. Revenues to three customers and their respective affiliates in the Wireless business segment accounted for 33.8%, 18.4% and 11.4% of the Company’s total revenues for the three months ended June 30, 2011. Revenues to two customers and their respective affiliates in the Wireless business segment accounted for 36.0% and 20.6% of the Company’s total revenues for the six months ended June 30, 2012. Revenues to four customers and their respective affiliates in the Wireless business segment accounted for 23.1%, 19.2%, 12.1% and 11.3% of the Company’s total revenues for the six months ended June 30, 2011.

Geographical Information

During the three and six months ended June 30, 2012 and 2011, 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 June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Americas	$	8,308	$	14,475	$	16,992	$	30,932
Asia Pacific		1,110		663		1,855		1,137
EMEA		753		967		1,438		1,827
Total Revenues	$	10,171	$	16,105	$	20,285	$	33,896

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