Segment, Customer Concentration and Geographical Information

12 Months Ended

Dec. 31, 2017

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 NetWise®, CommSuite®, SafePath®, and QuickLink® family of products.  Graphics includes our consumer-based products: Poser®, Moho® (formerly Anime Studio®), Clip Studio® (formerly 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):

	Year Ended December 31,
	2017		2016		2015
Wireless	$	18,342	$	23,086	$	33,553
Graphics		4,632		5,149		5,954
Total revenues		22,974		28,235		39,507
Cost of revenues		5,082		7,564		8,152
Gross profit	$	17,892	$	20,671	$	31,355

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,
	2017			2016			2015
Wireless:
Sprint (& affiliates)		61	%		63	%		65	%
Graphics:
FastSpring		14	%		14	%		11	%

The customers listed above comprised 72%, 80%, and 83% of our accounts receivable as of December 31, 2017, 2016, and 2015, 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, 2017, 2016, and 2015, 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):

	Year Ended December 31,
	2017		2016		2015
Americas	$	22,579	$	27,618	$	39,008
EMEA		170		424		239
Asia Pacific		225		193		260
Total revenues	$	22,974	$	28,235	$	39,507