Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

Segment Information

NOTE 9 — SEGMENT INFORMATION

We define operating segments as components of our enterprise for which separate financial information is reviewed regularly by the chief operating decision-makers to evaluate performance and to make operating decisions. We have identified our Chief Executive Officer and Vice President of Finance as our chief operating decision-makers (“CODM”). These chief operating decision makers review revenues by segment and review overall results of operations.

We currently operate our business as two operating segments based on revenue type:  license fees and services revenue, and customer support revenue (as shown on the consolidated statements of operations).  License fees and services (“L&S”) revenuerepresents the fees received from the license of software products and those services directly related to the delivery of the licensed products, such as fees for custom development and integration services.  Customer support (“CS”) revenue includes annual support fees, recurring maintenance fees, fees for maintenance upgrades and warranty services.  Warranty services that are similar to software maintenance services are typically bundled with a license sale. Total assets by segment have not been disclosed as the information is not available to the chief operating decision-makers.

Segment information is as follows (in thousands):

	For the Three Months Ended March 31,
		2013		2012
Revenue
License fees and services	$	4,507	$	3,784
Customer support		2,162		2,124
Total revenue		6,669		5,908
Revenue less costs of revenue, excluding
depreciation and amortization
License fees and services		2,971		1,966
Customer support		1,854		1,764
		4,825		3,730
Unallocated Costs
Other operating expenses		2,909		2,983
Depreciation and amortization		135		172
Interest income		(3)		(21)
Interest income, related party		-		(432)
Interest expense		6		-
Foreign currency exchange loss		43		96
Income from operations before income taxes	$	1,735	$	932

Geographic Regions

We are headquartered in Englewood, a suburb of Denver, Colorado. We use customer locations as the basis for attributing revenues to individual countries. We provide products and services on a global basis through our headquarters and our London-based Evolving Systems U.K. subsidiary. Additionally, personnel in Bangalore, India provide software development services to our global operations. Financial information relating to operations by geographic region is as follows (in thousands):

	For the Three Months Ended March 31,
	2013						2012
Revenue		L&S		CS		Total		L&S		CS		Total
United Kingdom	$	913	$	484	$	1,397	$	377	$	503	$	880
Philippines		1,143		38		1,181		372		-		372
Other		2,451		1,640		4,091		3,035		1,621		4,656
Total revenues	$	4,507	$	2,162	$	6,669	$	3,784	$	2,124	$	5,908

		March 31,		December 31,
Long-lived assets, net		2013		2012
United States	$	41	$	47
United Kingdom		15,747		16,842
Other		32		36
	$	15,820	$	16,925