Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v3.7.0.1
Industry, Segment and Geographic Information
 3 Months Ended
Mar. 31, 2017
Industry, Segment and Geographic Information  
Industry, Segment and Geographic Information

13.Segment Information:

 

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,

 

 

    

2017

    

2016

    

Revenue:

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

104,483

 

$

86,340

 

TechXtend

 

 

8,313

 

 

6,983

 

 

 

 

112,796

 

 

93,323

 

Gross Profit:

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

5,843

 

$

5,153

 

TechXtend

 

 

916

 

 

800

 

 

 

 

6,759

 

 

5,953

 

Direct Costs:

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

2,107

 

$

1,818

 

TechXtend

 

 

472

 

 

504

 

 

 

 

2,579

 

 

2,322

 

Segment Income Before Taxes:

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

3,736

 

$

3,335

 

TechXtend

 

 

444

 

 

296

 

Segment Income Before Taxes

 

 

4,180

 

 

3,631

 

 

 

 

 

 

 

 

 

General and administrative

 

$

2,388

 

$

2,138

 

Interest income

 

 

148

 

 

64

 

Income before taxes

 

$

1,940

 

$

1,557

 

 

 

 

 

 

 

 

 

 

 

    

As of 

    

As of 

    

 

 

March 31,

 

December 31,

 

Selected Assets By Segment:

 

2017

 

2016

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

59,172

 

$

64,558

 

TechXtend

 

 

23,071

 

 

32,202

 

Segment Select Assets

 

 

82,243

 

 

96,760

 

Corporate Assets

 

 

14,646

 

 

16,938

 

Total Assets

 

$

96,889

 

$

113,698