Segment, Customer Concentration and Geographical Information

3 Months Ended

Mar. 31, 2018

Segment, Customer Concentration and Geographical Information

8. 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 March 31,
	2018		2017
	(unaudited)
Wireless	$	4,816	$	4,359
Graphics		647		1,217
Total revenues	$	5,463	$	5,576

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 March 31,
	2018			2017
	(unaudited)
Wireless:
Sprint (& affiliates)		75.3	%		61.8	%
Graphics:
FastSpring		10.0	%		13.9	%

The two customers listed above comprised 80% and 75% of our accounts receivable as of March 31, 2018 and 2017, respectively.

Geographical Information

During the three months ended March 31, 2018 and 2017, 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 March 31,
	2018		2017
	(unaudited)
Americas	$	5,374	$	5,474
EMEA		30		49
Asia Pacific		59		53
Total revenues	$	5,463	$	5,576

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