Quarterly report pursuant to Section 13 or 15(d)

Industry, Segment and Geographic Information

v2.4.0.8
Industry, Segment and Geographic Information
 6 Months Ended
Jun. 30, 2014
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,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenue:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

129,237

 

$

115,078

 

$

69,979

 

$

61,209

 

TechXtend

 

26,892

 

24,997

 

14,420

 

12,886

 

 

 

156,129

 

140,075

 

84,399

 

74,095

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

8,728

 

$

8,284

 

$

4,612

 

$

4,511

 

TechXtend

 

2,949

 

2,994

 

1,527

 

1,454

 

 

 

11,677

 

11,278

 

6,139

 

5,965

 

Direct Costs:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

2,479

 

$

2,350

 

$

1,248

 

$

1,245

 

TechXtend

 

1,595

 

1,654

 

801

 

765

 

 

 

4,074

 

4,004

 

2,049

 

2,010

 

Segment Income:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

6,249

 

$

5,934

 

$

3,364

 

$

3,266

 

TechXtend

 

1,354

 

1,340

 

726

 

689

 

Segment Income

 

7,603

 

7,274

 

4,090

 

3,955

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

3,928

 

$

3,727

 

$

1,908

 

$

1,804

 

Interest, net

 

255

 

276

 

132

 

146

 

Foreign currency translation (loss) gain

 

(4

)

21

 

8

 

16

 

Income before taxes

 

$

3,926

 

$

3,844

 

$

2,322

 

$

2,313

 

 

 

 

 

 

 

 

 

 

 

 

 

As of
June 30,
2014

 

 

 

 

 

 

 

Selected Assets By Segment:

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

32,284

 

 

 

 

 

 

 

TechXtend

 

36,933

 

 

 

 

 

 

 

Segment Select Assets

 

69,217

 

 

 

 

 

 

 

Corporate Assets

 

16,632

 

 

 

 

 

 

 

Total Assets

 

$

85,849