Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

 v2.3.0.11
Segment Reporting
 6 Months Ended
Jun. 30, 2011
Segment Reporting  
Segment Reporting

13.           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 “TechXtend” segment (formerly the “Programmer’s Paradise” segment), which sells technical software, hardware and services directly to end-users (such as individual programmers, corporations, government agencies, and educational institutions) and the “Lifeboat” segment, which distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators.

 

As permitted by 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 applicable 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”; it does not allocate its other assets, including capital expenditures by segment.

 

The following segment reporting information of the Company is provided (in thousands):

 

 

 

Six months ended

 

Three months ended

 

 

 

June 30

 

June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Revenue:

 

 

 

 

 

 

 

 

 

TechXtend

 

$

23,708

 

$

23,873

 

$

11,710

 

$

12,632

 

Lifeboat

 

88,502

 

64,927

 

48,951

 

35,810

 

 

 

112,210

 

88,800

 

60,661

 

48,442

 

Gross Profit:

 

 

 

 

 

 

 

 

 

TechXtend

 

$

2,714

 

$

2,657

 

$

1,303

 

$

1,334

 

Lifeboat

 

7,712

 

5,996

 

4,298

 

3,351

 

 

 

10,426

 

8,653

 

5,601

 

4,685

 

Direct Costs:

 

 

 

 

 

 

 

 

 

TechXtend

 

$

1,459

 

$

1,394

 

$

740

 

$

683

 

Lifeboat

 

2,269

 

1,806

 

1,152

 

968

 

 

 

3,728

 

3,200

 

1,892

 

1,651

 

Segment Income:

 

 

 

 

 

 

 

 

 

TechXtend

 

$

1,255

 

$

1,263

 

$

563

 

$

651

 

Lifeboat

 

5,443

 

4,190

 

3,146

 

2,383

 

Segment Income

 

6,698

 

5,453

 

3,709

 

3,034

 

 

 

 

 

 

 

 

 

 

 

Corporate general and administrative expenses

 

$

3,442

 

$

2,990

 

$

1,748

 

$

1,509

 

Interest income

 

172

 

212

 

86

 

104

 

Foreign currency translation gain

 

1

 

3

 

1

 

2

 

Income before taxes

 

$

3,429

 

$

2,678

 

$

2,048

 

$

1,631

 

 

 

 

 

 

 

 

 

 

 

Selected Assets By Segment:

 

 

 

 

 

 

 

 

 

TechXtend

 

$

19,516

 

 

 

 

 

 

 

Lifeboat

 

26,642

 

 

 

 

 

 

 

Corporate assets

 

15,779

 

 

 

 

 

 

 

Segment Selected Assets

 

$

61,937