Segment Reporting and Significant Concentration

12 Months Ended

Dec. 31, 2012

Segment Reporting and Significant Concentration [Abstract]

Segment Reporting and Significant Concentration

4. Segment Reporting and Significant Concentration

Segment Information. We have evaluated how our chief operating decision maker has organized our company for purposes of making operating decisions and assessing performance, and have concluded that as of December 31, 2012, we have one reportable segment.

Products and Services. Our products and services help companies with complex transaction-centric business models manage the opportunities and challenges associated with accurately capturing, managing, generating, and optimizing the revenue associated with the immense volumes of customer interactions and then manage the intricate nature of those customer relationships. Our core billing and customer care and business optimization platform, Advanced Convergent Platform (“ACP”), is a pre-integrated platform, delivered in an outsourced managed services environment. We generate a substantial percentage of our revenues by providing our ACP processing and Customer Interaction Management solutions, and related software products (e.g., ACSR, Workforce Express, etc.) to the North American cable and satellite markets. Additionally, we license certain software products (e.g., WBMS, TSM, and Singleview) and provide our professional services to implement these software products, increase the efficiency and productivity of our clients’ operations, and allow clients to effectively roll out new products as well as attract and retain customers.

Geographic Regions. For 2012 and 2011, 87% and 85%, respectively, of our revenues were attributable to our operations in the Americas. We use the location of the client as the basis of attributing revenues to individual regions. Financial information relating to our operations by geographic region is as follows (in thousands):

	2012		2011		2010
Total Revenues:
Americas (principally the U.S.)	$	652,008	$	627,231	$	540,377
Europe, Middle East and Africa (principally Europe)		73,113		75,938		7,482
Asia Pacific		31,745		31,562		1,520
Total revenues	$	756,866	$	734,731	$	549,379

	As of December 31,
	2012		2011
Property and Equipment:
Americas (principally the U.S.)	$	34,796	$	36,149
Europe, Middle East and Africa (principally Europe)		2,238		2,159
Asia Pacific		2,395		2,846
Total long-lived assets	$	39,429	$	41,154

Significant Clients and Industry Concentration. A large percentage of our historical revenues have been generated from our four largest clients, which are Comcast Corporation (“Comcast”), DISH Network Corporation (“DISH”), Time Warner Cable Inc. (“Time Warner”), and Charter Communications, Inc. (“Charter”). Revenues from these clients represented the following percentages of our total revenues for the following years:

	2012			2011			2010
Comcast		20	%		19	%		24	%
DISH		14	%		13	%		18	%
Time Warner		10	%		10	%		12	%
Charter		<10	%		<10	%		10	%

As of December 31, 2012 and 2011, the percentage of net billed accounts receivable balances attributable to these clients were as follows:

	As of December 31,
	2012			2011
Comcast		19	%		19	%
DISH		19	%		12	%
Time Warner		14	%		11	%
Charter		<10	%		<10	%

We expect to continue to generate a significant percentage of our future revenues from a limited number of clients, including Comcast, DISH, Time Warner, and Charter. There are inherent risks whenever a large percentage of total revenues are concentrated with a limited number of clients. Should a significant client: (i) terminate or fail to renew their contracts with us, in whole or in part for any reason; (ii) significantly reduce the number of customer accounts processed on our solutions, the price paid for our services, or the scope of services that we provide; or (iii) experience significant financial or operating difficulties, it could have a material adverse effect on our financial position and results of operations.