Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 6 Months Ended
Jun. 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Three months ended

 

 

 

June 30,

 

June 30,

 

 

    

2017

    

2016

    

2017

    

2016

    

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

200,157

 

$

175,999

 

$

95,674

 

$

89,659

 

TechXtend

 

 

15,621

 

 

22,581

 

 

7,308

 

 

15,598

 

 

 

 

215,778

 

 

198,580

 

 

102,982

 

 

105,257

 

Gross Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

11,455

 

$

10,699

 

$

5,612

 

$

5,547

 

TechXtend

 

 

1,876

 

 

2,253

 

 

960

 

 

1,453

 

 

 

 

13,331

 

 

12,952

 

 

6,572

 

 

7,000

 

Direct Costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

4,276

 

$

3,596

 

$

2,171

 

$

1,778

 

TechXtend

 

 

889

 

 

1,062

 

 

417

 

 

558

 

 

 

 

5,165

 

 

4,658

 

 

2,588

 

 

2,336

 

Segment Income Before Taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

7,179

 

$

7,103

 

$

3,441

 

$

3,769

 

TechXtend

 

 

987

 

 

1,191

 

 

543

 

 

895

 

Segment Income Before Taxes

 

 

8,166

 

 

8,294

 

 

3,984

 

 

4,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

$

4,645

 

$

4,558

 

$

2,254

 

$

2,420

 

Interest income

 

 

321

 

 

125

 

 

173

 

 

61

 

Foreign currency translation

 

 

(50)

 

 

(3)

 

 

(50)

 

 

(3)

 

Income before taxes

 

$

3,792

 

$

3,858

 

$

1,853

 

$

2,302

 

 

 

 

 

 

 

 

 

 

 

    

As of 

    

As of 

    

 

 

June 30,

 

December 31,

 

Selected Assets By Segment:

 

2017

 

2016

 

 

 

 

 

 

 

 

 

Lifeboat Distribution

 

$

52,396

 

$

64,558

 

TechXtend

 

 

24,932

 

 

32,202

 

Segment Select Assets

 

 

77,328

 

 

96,760

 

Corporate Assets

 

 

13,592

 

 

16,938

 

Total Assets

 

$

90,920

 

$

113,698