Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 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 September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(unaudited)				(unaudited)
Wireless	$	4,690	$	5,237	$	13,678	$	17,513
Graphics		1,114		1,241		3,564		3,638
Total revenues	$	5,804	$	6,478	$	17,242	$	21,151

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 September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Wireless:
Sprint (& affiliates)		58.8	%		64.5	%		60.0	%		64.7	%
Graphics:
FastSpring		12.6	%		13.7	%		14.1	%		12.8	%

The two customers listed above comprised 68% and 81% of our accounts receivable as of September 30, 2017 and 2016, respectively.

Geographical Information

During the three and nine months ended September 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 September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(unaudited)				(unaudited)
Americas	$	5,713	$	6,218	$	16,949	$	20,662
EMEA		43		203		124		367
Asia Pacific		48		57		169		122
Total revenues	$	5,804	$	6,478	$	17,242	$	21,151

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