GEOGRAPHIC AND SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

GEOGRAPHIC AND SEGMENT REPORTING

NOTE 4 — GEOGRAPHIC AND SEGMENT REPORTING

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by our chief operating decision maker, or decision-making group, in assessing performance and deciding how to allocate resources. Our reportable operating segments are Licenses, Maintenance Services and Professional Services. The Licenses segment develops and markets licenses to use our software products. The Maintenance Services segment provides after-sale support for software products. The Professional Services segment provides consulting and fee-based training related to our software products.

We do not separately allocate operating expenses to these segments, nor do we allocate specific assets to these segments. Therefore, segment information reported includes only revenues, cost of revenues, and gross profit.

Reportable segment data for the three months and six months ended June 30, 2012 and 2011 is as follows (in thousands):

	Licenses		Maintenance Services		Professional Services		Total
Three months ended June 30, 2012:
Revenues	$	71,752	$	129,393	$	14,557	$	215,702
Cost of revenues		10,082		12,208		12,442		34,732
Gross profit	$	61,670	$	117,185	$	2,115	$	180,970
Three months ended June 30, 2011:
Revenues	$	77,632	$	110,276	$	15,062	$	202,970
Cost of revenues		7,799		10,469		12,165		30,433
Gross profit	$	69,833	$	99,807	$	2,897	$	172,537
Six months ended June 30, 2012:
Revenues	$	141,735	$	256,212	$	29,950	$	427,897
Cost of revenues		19,933		24,027		24,625		68,585
Gross profit	$	121,802	$	232,185	$	5,325	$	359,312
Six months ended June 30, 2011:
Revenues	$	144,367	$	218,342	$	28,418	$	391,127
Cost of revenues		14,233		20,480		23,120		57,833
Gross profit	$	130,134	$	197,862	$	5,298	$	333,294

Revenues are attributed to geographic areas based on the location of the Quest entity from which the products or services were invoiced. Revenues and long-lived assets concerning principal geographic areas in which we operate are as follows (in thousands):

	United States		Ireland		Other International  (2)		Total
Three months ended/As of June 30, 2012:
Revenues	$	132,081	$	38,132	$	45,489	$	215,702
Long-lived assets (1)		129,057		21,480		16,185		166,722
Three months ended/As of June 30, 2011:
Revenues	$	120,152	$	36,359	$	46,459	$	202,970
Long-lived assets (1)		113,636		7,802		13,912		135,350
Six months ended/As of June 30, 2012:
Revenues	$	256,051	$	77,871	$	93,975	$	427,897
Long-lived assets (1)		129,057		21,480		16,185		166,722
Six months ended/As of June 30, 2011:
Revenues	$	232,899	$	67,324	$	90,904	$	391,127
Long-lived assets (1)		113,636		7,802		13,912		135,350

(1) Includes property and equipment, net and other assets

(2) No single location within Other International accounts for greater than 10% of total revenues