Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Wireless	$	8,355	$	7,243	$	22,205	$	25,989
Productivity & Graphics		1,093		1,503		4,220		4,843
Total revenues	$	9,448	$	8,746	$	26,425	$	30,832

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,
	2014			2013			2014			2013
Wireless:
Sprint (& affiliates)		67.1	%		61.5	%		67.3	%		55.6	%
Verizon Wireless (& affiliates)		8.2	%		9.8	%		7.4	%		14.9	%
Productivity & Graphics:
FastSpring		10.0	%		13.6	%		11.8	%		11.9	%

These three customers listed above comprised 94% and 88% of our accounts receivable at September 30, 2014 and 2013, respectively.

Geographical Information

During the three and nine months ended September 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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(unaudited)				(unaudited)
Americas	$	8,859	$	8,318	$	25,447	$	29,340
EMEA		541		166		719		788
Asia Pacific		48		262		259		704
Total Revenues	$	9,448	$	8,746	$	26,425	$	30,832

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