Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v3.2.0.727
Industry, Segment and Geographic Information
 6 Months Ended
Jun. 30, 2015
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 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:

 

 

 

Six months ended

 

Three months ended

 

 

 

June 30,

 

June 30

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
164,206

 

$
129,237

 

$
81,260

 

$
69,979

 

TechXtend

 
20,456

 
26,892

 
10,710

 
14,420

 

 

 

 

 

 

 

 

 

 

 

 

 
184,662

 
156,129

 
91,970

 
84,399

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
10,344

 

$
8,728

 

$
5,110

 

$
4,612

 

TechXtend

 
2,438

 
2,949

 
1,315

 
1,527

 

 

 

 

 

 

 

 

 

 

 

 

 
12,782

 
11,677

 
6,425

 
6,139

 

 

 

 

 

 

 

 

 

 

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 
3,708

 

$
2,479

 

$
1,931

 

$
1,248

 

TechXtend

 
1,205

 
1,595

 
611

 
801

 

 

 

 

 

 

 

 

 

 

 

 

 
4,913

 
4,074

 
2,542

 
2,049

 

 

 

 

 

 

 

 

 

 

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$
6,636

 

$
6,249

 

$
3,179

 

$
3,364

 

TechXtend

 
1,233

 
1,354

 
704

 
726

 

 

 

 

 

 

 

 

 

 

 

Segment Income

 
7,869

 
7,603

 
3,883

 
4,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$
4,003

 

$
3,928

 

$
1,907

 

$
1,908

 

Interest, net

 
197

 
255

 
99

 
132

 

Foreign currency translation (loss)

 
(5

)
(4

)
(4

)
8

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

$
4,058

 

$
3,926

 

$
2,071

 

$
2,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Assets By Segment:

 

As of
June 30,
2015

 

As of
December 31,
2014

 

Lifeboat Distribution

 

$
39,100 

 

$
39,780 

 

TechXtend

 
24,797 

 
30,153 

 

 

 

 

 

 

 

Segment Select Assets

 
63,897 

 
69,933 

 

Corporate Assets

 
21,010 

 
25,048 

 

 

 

 

 

 

 

Total Assets

 

$
84,907 

 

$
94,981