Segment, Customer Concentration and Geographical Information

12 Months Ended

Dec. 31, 2012

Segment, Customer Concentration and Geographical Information [Abstract]

Segment, Customer Concentration and Geographical Information

7. Segment, Customer Concentration and Geographical Information

Segment Information

Public companies are required to report financial and descriptive information about their reportable operating segments as required by FASB ASC Topic No. 280, Segment Reporting. The Company has two primary business units based on how management internally evaluates separate financial information, business activities and management responsibility. Wireless includes our QuickLink, NetWise and CommSuite family of products. Productivity & Graphics includes our consumer-based products: Poser, Anime Studio, Manga Studio, MotionArtist and StuffIt. “Corporate/Other” revenue includes the consulting portion of our services sector which has been de-emphasized and is not a strategic element of our future plans.

The following table shows the revenues generated by each business unit (in thousands):

		Year Ended December 31,
		2012		2011		2010
Wireless	$	36,963	$	48,711	$	118,684
Productivity & Graphics		6,175		8,816		11,399
Corporate/Other		191		240		418
Total revenues		43,329		57,767		130,501
Cost of revenues		8,448		13,761		15,507
Gross profit	$	34,881	$	44,006	$	114,994

Customer Concentration Information

Revenues to two customers (Sprint and Verizon Wireless) and their respective affiliates in the Wireless business segment accounted for 40.7% and 20.5%, respectively, of the Company’s total revenues for the fiscal year 2012. In 2011, our three largest customers (Sprint, Verizon Wireless and AT&T) accounted for 24.8%, 18.4% and 11.7%, respectively, of our total revenues. In 2010, our three largest customers (Verizon Wireless, Sprint and AT&T) accounted for 40.1%, 13.9% and 12.3%, respectively, of our total revenues. Our major customers could reduce their orders of our products in favor of a competitor’s product or for any other reason. The loss of any of our major customers or decisions by a significant customer to substantially reduce purchases could have a material adverse effect on our business.

Geographical Information

During the years ended December 31, 2012, 2011 and 2010, the Company operated in three geographic locations: the Americas, Asia Pacific and EMEA (Europe, the Middle East, and Africa). Revenues attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands):

		Year ended December 31,
		2012		2011		2010
Americas	$	37,724	$	51,784	$	121,495
Asia Pacific		2,871		2,812		1,889
EMEA		2,734		3,171		7,117
Total revenues	$	43,329	$	57,767	$	130,501

The Company does not separately allocate specific assets to these geographic locations.