Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Wireless	$	9,559	$	10,211	$	26,865	$	40,000
Productivity & Graphics		1,411		2,365		4,281		6,339
Corporate/Other		42		56		151		189
Total revenues	$	11,012	$	12,632	$	31,297	$	46,528

Customer Concentration Information

Revenues to two customers and their respective affiliates in the Wireless business segment accounted for 46.1% and 19.4% of the Company’s total revenues for the three months ended September 30, 2012. 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 two customers and their respective affiliates in the Wireless business segment accounted for 39.6% and 20.2% of the Company’s total revenues for the nine months ended September 30, 2012. 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.

Geographical Information

During the three and nine months ended September 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 September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Americas	$	9,863	$	11,153	$	26,855	$	42,085
Asia Pacific		369		816		2,224		1,953
EMEA		780		663		2,218		2,490
Total Revenues	$	11,012	$	12,632	$	31,297	$	46,528

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