Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v3.4.0.3
Industry, Segment and Geographic Information
 3 Months Ended
Mar. 31, 2016
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:

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2016

 

2015

 

Revenue:

 

 

 

 

 

Lifeboat Distribution

 

$
86,340

 

$
82,945

 

TechXtend

 
6,983

 
9,746

 

 

 

 

 

 

 

 

 
93,323

 
92,691

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

Lifeboat Distribution

 

$
5,153

 

$
5,234

 

TechXtend

 
800

 
1,122

 

 

 

 

 

 

 

 

 
5,953

 
6,356

 

 

 

 

 

 

 

Direct Costs:

 

 

 

 

 

Lifeboat Distribution

 

$
1,818

 

$
1,777

 

TechXtend

 
504

 
594

 

 

 

 

 

 

 

 

 
2,322

 
2,371

 

 

 

 

 

 

 

Segment Income:

 

 

 

 

 

Lifeboat Distribution

 

$
3,335

 

$
3,457

 

TechXtend

 
296

 
528

 

 

 

 

 

 

 

Segment Income

 
3,631

 
3,985

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$
2,138

 

$
2,095

 

Interest, net

 
64

 
98

 

Foreign currency translation (loss)

 

—

 
(1

)

 

 

 

 

 

 

Income before taxes

 

$
1,557

 

$
1,987

 

 

 

 

 

 

 

 

 

 

 

 

As of
March 31,
2016

 

As of
December
31, 2015

 

Selected Assets By Segment:

 

 

 

 

 

Lifeboat Distribution

 

$
45,807 

 

$
45,300 

 

TechXtend

 
18,972 

 
23,005 

 

 

 

 

 

 

 

Segment Select Assets

 
64,779 

 
68,305 

 

Corporate Assets

 
26,415 

 
25,777 

 

 

 

 

 

 

 

Total Assets

 

$
91,194 

 

$
94,082