Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [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 QuickLink®, NetWise™ and CommSuite® family of products. Productivity & Graphics includes our consumer-based products: Poser®, Anime Studio®, Manga Studio™, MotionArtist™ and StuffIt®.

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,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Wireless	$	7,243	$	9,601	$	25,989	$	27,016
Productivity & Graphics		1,503		1,411		4,843		4,281
Total revenues	$	8,746	$	11,012	$	30,832	$	31,297

Customer Concentration Information

A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Wireless:
Sprint (& affiliates)		61.5%		46.1%		55.6%		39.6%
Verizon Wireless (& affiliates)		9.8%		19.4%		14.9%		20.2%
Productivity & Graphics:
FastSpring		13.6%		7.1%		11.9%		5.1%

The three customers listed above comprised 88% and 73% of our accounts receivable as of September 30, 2013 and 2012, respectively.

Geographical Information

During the three and nine months ended September 30, 2013 and 2012, the Company operated in three geographic locations; the Americas, EMEA (Europe, the Middle East, and Africa) and Asia Pacific. 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,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Americas	$	8,318	$	9,863	$	29,340	$	26,855
EMEA		166		780		788		2,218
Asia Pacific		262		369		704		2,224
Total Revenues	$	8,746	$	11,012	$	30,832	$	31,297

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