Segment, Customer Concentration and Geographical Information

9 Months Ended

Sep. 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 September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Wireless	$	6,283	$	4,690	$	17,605	$	13,678
Graphics		242		1,114		1,328		3,564
Total revenues	$	6,525	$	5,804	$	18,933	$	17,242

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,
	2018			2017				2018			2017
	(unaudited)						(unaudited)
Wireless:
Sprint (& affiliates)		86	%		59	%			81	%		60	%
Graphics:
FastSpring		3	%		13	%			5	%		14	%

The two customers listed above comprised 88% and 68% of our accounts receivable as of September 30, 2018 and 2017, respectively.

Geographical Information

During the three and nine months ended September 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 September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
	(unaudited)				(unaudited)
Americas	$	6,483	$	5,713	$	18,724	$	16,949
EMEA		18		43		77		124
Asia Pacific		24		48		132		169
Total revenues	$	6,525	$	5,804	$	18,933	$	17,242

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