Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.8.0.1
Segment Information
 9 Months Ended
Sep. 30, 2017
Segment Information  
Segment 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

Three months ended

 

 

 

September 30,

 

September 30,

 

 

    

2017

    

2016

    

2017

    

2016

    

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

300,344

 

$

267,113

 

$

100,188

 

$

91,114

 

TechXtend

 

 

22,079

 

 

31,054

 

 

6,458

 

 

8,472

 

 

 

 

322,423

 

 

298,167

 

 

106,646

 

 

99,586

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

16,873

 

$

16,139

 

$

5,417

 

$

5,440

 

TechXtend

 

 

2,702

 

 

3,186

 

 

826

 

 

932

 

 

 

 

19,575

 

 

19,325

 

 

6,243

 

 

6,372

 

Direct Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

6,142

 

$

5,442

 

$

1,866

 

$

1,846

 

TechXtend

 

 

1,362

 

 

1,553

 

 

473

 

 

490

 

 

 

 

7,504

 

 

6,995

 

 

2,339

 

 

2,336

 

Segment Income Before Taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

10,731

 

$

10,697

 

$

3,551

 

$

3,594

 

TechXtend

 

 

1,340

 

 

1,633

 

 

353

 

 

442

 

Segment Income Before Taxes

 

 

12,071

 

 

12,330

 

 

3,904

 

 

4,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

6,757

 

$

6,575

 

$

2,112

 

$

2,015

 

Interest, net

 

 

466

 

 

183

 

 

145

 

 

58

 

Foreign currency translation

 

 

22

 

 

(1)

 

 

73

 

 

 3

 

Income before taxes

 

$

5,802

 

$

5,937

 

$

2,010

 

$

2,082

 

 

 

 

 

 

 

 

 

 

 

 

    

As of 

    

As of 

    

 

 

September 30,

 

December 31,

 

Selected Assets By Segment:

 

2017

 

2016

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

61,620

 

$

64,558

 

TechXtend

 

 

22,180

 

 

32,202

 

Segment Select Assets

 

 

83,800

 

 

96,760

 

Corporate Assets

 

 

7,216

 

 

16,938

 

Total Assets

 

$

91,016

 

$

113,698