Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.8
Industry, Segment and Geographic Information
 3 Months Ended
Mar. 31, 2014
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

12.                               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 worldwide.  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:

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2014

 

2013

 

Revenue:

 

 

 

 

 

Lifeboat Distribution

 

$

59,259

 

$

53,869

 

TechXtend

 

12,471

 

12,111

 

 

 

71,730

 

65,980

 

Gross Profit:

 

 

 

 

 

Lifeboat Distribution

 

$

4,116

 

$

3,772

 

TechXtend

 

1,422

 

1,541

 

 

 

5,538

 

5,313

 

Direct Costs:

 

 

 

 

 

Lifeboat Distribution

 

$

1,231

 

$

1,105

 

TechXtend

 

794

 

889

 

 

 

2,025

 

1,994

 

Segment Income:

 

 

 

 

 

Lifeboat Distribution

 

$

2,885

 

$

2,667

 

TechXtend

 

628

 

652

 

Segment Income

 

3,513

 

3,319

 

 

 

 

 

 

 

General and administrative

 

$

2,020

 

$

1,923

 

Interest, net

 

123

 

130

 

Foreign currency translation (loss) gain

 

(12

)

5

 

Income before taxes

 

$

1,604

 

$

1,531

 

 

 

 

As of
March 31,
2014

 

Selected Assets By Segment:

 

 

 

Lifeboat Distribution

 

$

32,978

 

TechXtend

 

34,926

 

Segment Select Assets

 

67,904

 

Corporate Assets

 

13,864

 

Total Assets

 

$

81,768