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Segment, Customer Concentration and Geographical Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment, Customer Concentration and Geographical Information

13. 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®, and SafePath® family of products. Graphics includes our consumer-based products: Poser®, Moho®, MotionArtist®, Rebelle, PhotoDonut 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):

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

Wireless

 

$

24,474

 

 

$

18,342

 

Graphics

 

 

1,811

 

 

 

4,632

 

Total revenues

 

 

26,285

 

 

 

22,974

 

Cost of revenues

 

 

4,333

 

 

 

5,082

 

Gross profit

 

$

21,952

 

 

$

17,892

 

 

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,

 

 

 

2018

 

 

2017

 

Wireless:

 

 

 

 

 

 

 

 

Sprint (& affiliates)

 

 

81

%

 

 

61

%

Graphics:

 

 

 

 

 

 

 

 

FastSpring

 

 

5

%

 

 

14

%

 

The customers listed above comprised 84% and 72% of our accounts receivable as of December 31, 2018 and 2017, 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, 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 customer’s bill-to address were as follows (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

Americas

 

$

26,054

 

 

$

22,579

 

EMEA

 

 

90

 

 

 

170

 

Asia Pacific

 

 

141

 

 

 

225

 

Total revenues

 

$

26,285

 

 

$

22,974