Segment, Customer Concentration and Geographical Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

6. 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 following table shows the revenues generated by each business unit (in thousands):

	Year Ended December 31,
	2014		2013		2012
Wireless	$	31,276	$	35,853	$	37,154
Productivity & Graphics		5,703		6,822		6,175
Total revenues		36,979		42,675		43,329
Cost of revenues		9,317		9,707		8,448
Gross profit	$	27,662	$	32,968	$	34,881

Customer Concentration Information

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

	Year Ended December 31,
	2014			2013			2012
Wireless:
Sprint (& affiliates)		68.0	%		53.1	%		40.7	%
Verizon Wireless (& affiliates)		7.8	%		13.0	%		20.5	%
Productivity & Graphics:
FastSpring		11.2	%		11.4	%		—

The customers listed above comprised 87%, 83% and 78% of our accounts receivable as of December 31, 2014, 2013 and 2012, respectively. Our major customers could reduce their orders of our products in favor of a competitor’s product or for any other reason. The loss of any of our major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on our business.

Geographical Information

During the years ended December 31, 2014, 2013 and 2012, 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):

	Year ended December 31,
	2014		2013		2012
Americas	$	35,689	$	38,532	$	37,724
Asia Pacific		326		928		2,871
EMEA		964		3,215		2,734
Total revenues	$	36,979	$	42,675	$	43,329

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