Segment, Customer Concentration and Geographical Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

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

		Year Ended December 31,
	2013		2012		2011
Wireless	$	35,853	$	37,154	$	48,951
Productivity & Graphics		6,822		6,175		8,816
Total revenues		42,675		43,329		57,767
Cost of revenues		9,707		8,448		13,761
Gross profit	$	32,968	$	34,881	$	44,006

Customer Concentration Information

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

		Year Ended December 31,
	2013			2012			2011
Wireless:
Sprint (& affiliates)		53.1	%		40.7	%		24.8	%
Verizon Wireless (& affiliates)		13.0	%		20.5	%		18.4	%
AT&T		-			-			11.7	%
Productivity & Graphics:
FastSpring		11.4	%		-			-

The customers listed above comprised 83%, 78% and 63% of our accounts receivable as of December 31, 2013, 2012 and 2011, respectively. 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, 2013, 2012 and 2011, 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,
		2013		2012		2011
Americas	$	38,532	$	37,724	$	51,784
Asia Pacific		928		2,871		2,812
EMEA		3,215		2,734		3,171
Total revenues	$	42,675	$	43,329	$	57,767

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