Segment Reporting and Significant Concentration

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Reporting and Significant Concentration

3. 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, 2016, 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 platform, Advanced Convergent Platform (“ACP”), is a pre-integrated cloud-based platform. We generate a substantial percentage of our revenues by providing our ACP cloud-based and customer interaction management solutions, and related software products (e.g., Advanced Customer Service Representative, Workforce Express, etc.) to the North American cable and satellite markets. Our next-generation solution, Ascendon, a SaaS-based, cloud platform, that provides a trusted path to digital transformation. Additionally, we license certain software products (e.g., WBMS, TSM, and Singleview) and provide our professional services to implement, configure, and maintain these software products, and allow clients to effectively roll out new products as well as attract and retain customers. We also provide our software solutions under managed services arrangements, where we assume long-term responsibility for delivering our solutions and related operations under a defined scope and specified service levels.

Geographic Regions. For 2016 and 2015, 86% and 84%, 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):

Total Revenues:

	2016		2015		2014
Americas (principally the U.S.)	$	652,376	$	634,389	$	636,482
Europe, Middle East and Africa (principally Europe)		69,425		78,711		79,535
Asia Pacific		39,157		39,420		35,269
Total revenues	$	760,958	$	752,520	$	751,286

Property and Equipment:	As of December 31,
	2016		2015
Americas (principally the U.S.)	$	28,003	$	29,052
Europe, Middle East and Africa (principally Europe)		2,749		3,879
Asia Pacific		2,364		3,061
Total property and equipment	$	33,116	$	35,992

Significant Clients and Industry Concentration. A large percentage of our historical revenues have been generated from our largest clients, which are Comcast Corporation (“Comcast”), the combined Charter Communications, Inc. (“Charter”)/Time Warner Cable, Inc. (“Time Warner”) entity, resulting from Charter’s acquisition of Time Warner in May 2016, and the subsequent assignment of the Time Warner agreement to Charter, and DISH Network Corporation (“DISH”).  To provide a consistent basis of comparison, the Charter and Time Warner revenues and accounts receivable balances are combined in the following tables for all periods prior to the acquisition without adjustment.

Revenues from these clients represented the following percentages of our total revenues for the following years:

	2016			2015			2014
Comcast		26	%		24	%		22	%
Charter/Time Warner (combined for all periods)		21	%		21	%		20	%
DISH		13	%		14	%		15	%

As of December 31, 2016 and 2015, the percentage of net billed accounts receivable balances attributable to these clients were as follows:

	As of December 31,
	2016			2015
Comcast		25	%		30	%
Charter/Time Warner (combined for all periods)		24	%		13	%
DISH		10	%		13	%

We expect to continue to generate a significant percentage of our future revenues from our largest clients, mentioned above.  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.