GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

6 Months Ended

Jun. 30, 2015

GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

12. GEOGRAPHIC INFORMATION AND MAJOR CLIENTS

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance.

The Company develops and licenses its strategic software applications and Pega 7 platform, and provides consulting services, maintenance, and training related to its offerings. The Company derives substantially all of its revenue from the sale and support of one group of similar products and services – software that provides business process solutions in the enterprise applications market. To assess performance, the Company’s CODM reviews financial information on a consolidated basis. Therefore, the Company determined it has one reportable segment — Digital Enterprise Business Solutions, and one reporting unit.

The Company’s international revenue is from clients based outside of the U.S. The Company derived its revenue from the following geographic areas:

	Three Months Ended June 30,								Six Months Ended June 30,
(Dollars in thousands)	2015				2014				2015				2014
U.S.	$	87,867	54	%	$	70,411	49	%	$	178,031	56	%	$	152,428	54	%
Other Americas		27,380	17	%		5,464	4	%		39,677	13	%		9,304	3	%
United Kingdom		21,149	13	%		24,643	17	%		41,376	13	%		53,557	19	%
Other EMEA		15,835	10	%		34,008	24	%		34,703	11	%		50,308	18	%
Asia Pacific		9,788	6	%		8,459	6	%		22,150	7	%		17,852	6	%
	$	162,019	100	%	$	142,985	100	%	$	315,937	100	%	$	283,449	100	%

There were no clients accounting for 10% or more of the Company’s total revenue during the second quarter and first six months of 2015 and 2014. Clients accounting for 10% or more of the Company’s total outstanding trade receivables, net of allowance, were as follows:

	As of June 30,			As of December 31,
(Dollars in thousands)	2015			2014
Trade receivables, net of allowance	$	135,585		$	154,844
Client A		13	%		n/a