Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.8.0.1
Segment Information
 3 Months Ended
Mar. 31, 2018
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:

 

 

 

 

 

 

 

 

 

Three months ended

March 31,

 

 

 

 

 

 

(As adjusted

see -Note 5)

 

    

2018

    

2017

Revenue:

 

 

 

 

 

 

Lifeboat Distribution

 

$

36,838

 

$

33,834

TechXtend

 

 

3,714

 

 

4,257

 

 

 

40,552

 

 

38,091

Gross Profit:

 

 

 

 

 

 

Lifeboat Distribution

 

$

6,184

 

$

5,843

TechXtend

 

 

710

 

 

916

 

 

 

6,894

 

 

6,759

Direct Costs:

 

 

 

 

 

 

Lifeboat Distribution

 

$

2,035

 

$

2,107

TechXtend

 

 

400

 

 

472

 

 

 

2,435

 

 

2,579

Segment Income Before Taxes:

 

 

 

 

 

 

Lifeboat Distribution

 

$

4,149

 

$

3,736

TechXtend

 

 

310

 

 

444

Segment Income Before Taxes

 

 

4,459

 

 

4,180

 

 

 

 

 

 

 

General and administrative

 

$

2,612

 

$

2,388

Interest, net

 

 

238

 

 

148

Foreign currency translation

 

 

 2

 

 

 —

Income before taxes

 

$

2,087

 

$

1,940

 

 

 

 

 

 

 

 

 

 

 

    

As of 

    

As of 

    

 

 

March 31,

 

December 31,

 

Selected Assets By Segment:

 

2018

 

2017

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

82,058

 

$

72,806

 

TechXtend

 

 

15,856

 

 

21,200

 

Segment Select Assets

 

 

97,914

 

 

94,006

 

Corporate Assets

 

 

10,533

 

 

8,279

 

Total Assets

 

$

108,447

 

$

102,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disaggregation of Revenue

Three months ended

 

 

March 31,

 

March 31,

 

 

2018

 

2017

Lifeboat Distribution

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware and software product

 

$
32,423

 

$

30,111

Software - security & highly interdependent with support

 

 
2,086

 

 

1,503

Maintenance, support & other services

 

 
2,329

 

 

2,220

Net Sales

 

$
36,838

 

$

33,834

 

 

 

 

 

 

 

TechXtend

 

 

 

 

 

 

 

 

 

 

 

 

 

Hardware and software product

 

$
3,439

 

$

3,819

Software - security & highly interdependent with support

 

 
17

 

 

48

Maintenance, support & other services

 

 
258

 

 

390

Net Sales

 

$
3,714

 

$

4,257