Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.8
Industry, Segment and Geographic Information
 9 Months Ended
Sep. 30, 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):

 

 

 

Nine months ended

 

Three months ended

 

 

 

September 30,

 

September 30,

 

 

 

2013

 

2012

 

2013

 

2012

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

171,949

 

$

158,838

 

$

56,871

 

$

55,989

 

TechXtend

 

38,588

 

52,772

 

13,591

 

19,545

 

 

 

210,537

 

211,610

 

70,462

 

75,534

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

12,129

 

$

11,336

 

$

3,846

 

$

3,707

 

TechXtend

 

4,414

 

5,519

 

1,419

 

1,991

 

 

 

16,543

 

16,855

 

5,265

 

5,698

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

3,445

 

$

3,310

 

$

1,095

 

$

1,071

 

TechXtend

 

2,390

 

2,547

 

735

 

866

 

 

 

5,835

 

5,857

 

1,830

 

1,937

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

8,684

 

$

8,026

 

$

2,751

 

$

2,636

 

TechXtend

 

2,024

 

2,972

 

684

 

1,125

 

Segment Income

 

10,708

 

10,998

 

3,435

 

3,761

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

5,376

 

$

5,291

 

$

1,650

 

$

1,674

 

Interest, net

 

416

 

394

 

140

 

140

 

Foreign currency translation gain (loss)

 

10

 

13

 

(11

)

12

 

Income before taxes

 

$

5,758

 

$

6,114

 

$

1,914

 

$

2,239

 

 

 

 

As of
September
30,
2013

 

Selected Assets by Segment:

 

 

 

Lifeboat Distribution

 

$

27,343

 

TechXtend

 

31,791

 

Segment Select Assets

 

59,134

 

Corporate Assets

 

17,277

 

Total Assets

 

$

76,411