Segment, Customer Concentration and Geographical Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment, Customer Concentration and Geographical Information

15. 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 NetWise^®, CommSuite^®, and QuickLink^® family of products. 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,
	2016		2015		2016		2015
	(unaudited)				(unaudited)
Wireless	$	6,303	$	7,887	$	12,276	$	17,106
Graphics		1,156		1,499		2,397		2,809
Total revenues	$	7,459	$	9,386	$	14,673	$	19,915

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,
	2016			2015			2016			2015
Wireless:
Sprint (& affiliates)		64.6	%		65.2	%		64.8	%		64.9	%
Graphics:
FastSpring		11.1	%		10.4	%		12.3	%		9.9	%

The two customers listed above comprised 81% and 85% our accounts receivable as of June 30, 2016 and 2015, respectively.

Geographical Information

During the three and six months ended June 30, 2016 and 2015, 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,
	2016		2015		2016		2015
	(unaudited)				(unaudited)
Americas	$	7,302	$	9,253	$	14,444	$	19,565
EMEA		103		73		164		125
Asia Pacific		54		60		65		225
Total revenues	$	7,459	$	9,386	$	14,673	$	19,915

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