Segment, Customer Concentration and Geographical Information

12 Months Ended

Dec. 31, 2015

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 NetWise, CommSuite, and QuickLink family of products. Graphics (formerly 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,
	2015		2014		2013
Wireless	$	33,553	$	31,276	$	35,853
Graphics		5,954		5,703		6,822
Total revenues		39,507		36,979		42,675
Cost of revenues		8,152		9,317		9,707
Gross profit	$	31,355	$	27,662	$	32,968

Customer Concentration Information

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

	Year Ended December 31,
	2015			2014			2013
Wireless:
Sprint (& affiliates)		65.4	%		68.0	%		53.1	%
Verizon Wireless (& affiliates)		4.2	%		7.8	%		13.0	%
Graphics:
FastSpring		11.3	%		11.2	%		11.4	%

The customers listed above comprised 83%, 87% and 83% of our accounts receivable as of December 31, 2015, 2014, and 2013, 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, 2015, 2014, and 2013, 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,
	2015		2014		2013
Americas	$	39,008	$	35,689	$	38,532
Asia Pacific		260		326		928
EMEA		239		964		3,215
Total revenues	$	39,507	$	36,979	$	42,675

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