Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

16. 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®, SafePath™, and QuickLink® family of products.  Graphics includes our consumer-based products: Poser®, Moho™,  ClipStudio®, 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):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
	(unaudited)				(unaudited)
Wireless	$	4,629	$	6,303	$	8,988	$	12,276
Graphics		1,233		1,156		2,450		2,397
Total revenues	$	5,862	$	7,459	$	11,438	$	14,673

Customer Concentration Information

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Wireless:
Sprint (& affiliates)		61.8	%		64.6	%		60.6	%		64.8	%
Graphics:
FastSpring		15.6	%		11.1	%		14.8	%		12.3	%

The two customers listed above comprised 76% and 81% our accounts receivable as of June 30, 2017 and 2016, respectively.

Geographical Information

During the three months ended June 30, 2017 and 2016, 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 customers’ bill-to address, were as follows (in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
	(unaudited)				(unaudited)
Americas	$	5,763	$	7,302	$	11,236	$	14,444
EMEA		31		103		81		164
Asia Pacific		68		54		121		65
Total revenues	$	5,862	$	7,459	$	11,438	$	14,673

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