Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.6
Industry, Segment and Geographic Information
 3 Months Ended
Mar. 31, 2013
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

13.             FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer.

 

The Company is organized into two reportable operating segments.  The “Lifeboat Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators primarily in the United States and Canada.  The “TechXtend” segment is a value-added reseller of software, hardware and services for corporations, government organizations and academic institutions in the United States and Canada.

 

As permitted by FASB ASC Topic 280, the Company has utilized the aggregation criteria in combining its operations in Canada with the domestic segments as the Canadian operations provide the same products and services to similar clients and are considered together when the Company’s CODM decides how to allocate resources.

 

Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable and inventory by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment.

 

The following segment reporting information of the Company is provided (in thousands):

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2013

 

2012

 

Revenue:

 

 

 

 

 

Lifeboat Distribution

 

$

53,869

 

$

49,301

 

TechXtend

 

12,111

 

17,606

 

 

 

65,980

 

66,907

 

Gross Profit:

 

 

 

 

 

Lifeboat Distribution

 

$

3,772

 

$

3,784

 

TechXtend

 

1,541

 

1,783

 

 

 

5,313

 

5,567

 

Direct Costs:

 

 

 

 

 

Lifeboat Distribution

 

$

1,105

 

$

1,131

 

TechXtend

 

889

 

841

 

 

 

1,994

 

1,972

 

Segment Income:

 

 

 

 

 

Lifeboat Distribution

 

$

2,667

 

$

2,653

 

TechXtend

 

652

 

942

 

Segment Income

 

3,319

 

3,595

 

 

 

 

 

 

 

General and administrative

 

$

1,923

 

$

2,015

 

Interest, net

 

130

 

124

 

Foreign currency translation gains

 

5

 

1

 

Income before taxes

 

$

1,531

 

$

1,705

 

 

 

 

As of
March 31,
2013

 

Selected Assets By Segment:

 

 

 

Lifeboat Distribution

 

$

27,671

 

TechXtend

 

30,191

 

Segment Select Assets

 

57,862

 

Corporate Assets

 

15,864

 

Total Assets

 

$

73,726