Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

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®, MotionArtist® and StuffIt®, and through April 2018 included third-party software products under the Clip Studio® brand, which we distributed under an agreement which expired in October 2017 and permitted certain post-termination distribution rights until April 2018.

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,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Wireless	$	6,506	$	4,629	$	11,322	$	8,988
Graphics		439		1,233		1,086		2,450
Total revenues	$	6,945	$	5,862	$	12,408	$	11,438

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,
	2018			2017			2018			2017
	(unaudited)						(unaudited)
Wireless:
Sprint (& affiliates)		79.4	%		61.8	%		77.6	%		60.6	%
Graphics:
FastSpring		3.4	%		15.6	%		6.3	%		14.8	%

The two customers listed above comprised 86% and 75% of our accounts receivable as of June 30, 2018 and 2017, respectively.

Geographical Information

During the three and six months ended June 30, 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 June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Americas	$	6,867	$	5,763	$	12,241	$	11,236
EMEA		29		31		59		81
Asia Pacific		49		68		108		121
Total revenues	$	6,945	$	5,862	$	12,408	$	11,438

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