Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

11. 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^®.

The Company does not separately allocate operating expenses to these business units, nor does it allocate specific assets. Therefore, business unit information reported includes only revenues.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Wireless	$	8,525	$	8,776	$	18,746	$	17,415
Productivity & Graphics		1,959		1,395		3,340		2,870
Total revenues	$	10,484	$	10,171	$	22,086	$	20,285

Customer Concentration Information

A summary of the Company’s customers that represent 10% or more of the Company’s net revenues is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Wireless:
Sprint (& affiliates)		51.2%		39.9%		53.3%		36.0%
Verizon Wireless (& affiliates)		18.4%		15.6%		16.9%		20.6%
Productivity & Graphics:
FastSpring		15.1%		N/A		11.2%		N/A

As of June 30, 2013 these three customers listed above comprised 91% of our accounts receivable. As of June 30, 2012 the two customers listed above comprised 69% of our accounts receivable.

Geographical Information

During the three and six months ended June 30, 2013 and 2012, the Company operated in three geographic locations; the Americas, EMEA (Europe, the Middle East, and Africa) and Asia Pacific. Revenues, attributed to the geographic location of the customer’s bill-to address, were as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Americas	$	10,223	$	8,308	$	21,022	$	16,992
EMEA		121		753		622		1,438
Asia Pacific		140		1,110		442		1,855
Total Revenues	$	10,484	$	10,171	$	22,086	$	20,285

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