Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

12. 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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Wireless	$	6,995	$	8,525	$	13,850	$	18,746
Productivity & Graphics		1,533		1,959		3,127		3,340
Total revenues	$	8,528	$	10,484	$	16,977	$	22,086

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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Wireless:
Sprint (& affiliates)		70.5	%		51.5	%		67.3	%		53.7	%
Verizon Wireless (& affiliates)		4.7	%		18.4	%		7.0	%		16.9	%
Productivity & Graphics:
FastSpring		12.8	%		15.1	%		12.7	%		11.2	%

These three customers listed above comprised 92% and 91% of our accounts receivable at June 30, 2014 and 2013, respectively.

Geographical Information

During the three and six months ended June 30, 2014 and 2013, 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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Americas	$	8,405	$	10,223	$	16,588	$	21,022
EMEA		58		121		178		622
Asia Pacific		65		140		211		442
Total Revenues	$	8,528	$	10,484	$	16,977	$	22,086

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