Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.7.0.1
Segments
3 Months Ended
Mar. 31, 2017
Segments [Abstract]  
SEGMENTS

14. SEGMENTS

 

The Company operates in three reportable segments: applications and infrastructure, professional services, and managed services. The Company identified its operating segments based on the services provided by its various operations and the financial information used by its chief operating decision maker to make decisions regarding the allocation of resources to and the financial performance of the operating segments. The reporting segments represent an aggregation of individual operating segments with similar economic characteristics. The applications and infrastructure operating segment is an aggregation of the component operations of TNS, the AWS Entities (sold by the Company in April 2017), Tropical, RM Leasing, and RM Engineering. The professional services operating segment is an aggregation of the operations of the ADEX Entities and SDNE. The managed services operating segment is primarily comprised of the operations of IPC.

 

In addition to the operating segments, the Company has determined that certain costs related to the general operations of the Company cannot be reasonably allocated to each individual segment. These costs are not part of the factors that the chief operating decision maker uses to calculate gross margin. As such, the Company has chosen to present those costs within a general “Corporate” line item for presentation purposes. The Company’s former VaultLogix and Axim subsidiaries, which were included in the Company’s former cloud services segment, were reclassified as “discontinued operations” to conform to classifications used in the current period related to the sale of VaultLogix, VaultLogix’s subsidiaries and Axim. The segment information for the three months ended March 31, 2016 has been retrospectively updated to reflect this change.

 

Segment information relating to the Company’s results of continuing operations was as follows:

 

    Three months ended
March 31,
 
    2017     2016  
             
Revenue by Segment            
Applications and infrastructure   $ 5,487     $ 5,235  
Professional services     6,271       6,520  
Managed services     2,192       5,874  
Total   $ 13,950     $ 17,629  

 

    Three months ended
March 31,
 
    2017     2016  
             
Gross Profit by Segment            
Applications and infrastructure   $ 1,472     $ 726  
Professional services     1,438       1,453  
Managed services     457       2,235  
Total   $ 3,367     $ 4,414  

 

    Three months ended
March 31,
 
    2017     2016  
             
Operating Income (Loss) by Segment            
Applications and infrastructure   $ 265     $ (453 )
Professional services     (4,115 )     (126 )
Managed services     (735 )     154  
Corporate     (2,679 )     (3,117 )
Total   $ (7,264 )   $ (3,542 )

 

    Three months ended
March 31,
 
    2017     2016  
             
Interest Expense by Segment            
Applications and infrastructure   $ 6     $ 4  
Professional services     -       -  
Managed services     -       2  
Corporate     4,269       4,709  
Total   $ 4,275     $ 4,715  

 

    Three months ended
March 31,
 
    2017     2016  
             
Depreciation and Amortization Expense by Segment            
Applications and infrastructure   $ 184     $ 212  
Professional services     100       127  
Managed services     154       211  
Corporate     4       6  
Total   $ 442     $ 556  

 

    March 31,
2017
    December 31, 
2016
 
Total Assets by Segment            
Applications and infrastructure   $ 15,850     $ 16,177  
Professional services     11,594       21,334  
Managed services     14,700       15,820  
Corporate     1,667       1,238  
Total   $ 43,811     $ 54,569  

 

    March 31,
2017
    December 31, 
2016
 
Goodwill by Segment            
Applications and infrastructure   $ 6,907     $ 6,906  
Professional services     3,780       10,081  
Managed services     6,381       6,381  
Total   $ 17,068     $ 23,368  

 

    Three months ended March 31, 2017  
    Domestic     Foreign     Total  
Revenues by Segment by Geographic Region                  
Applications and infrastructure   $ 5,056     $ 431     $ 5,487  
Professional services     6,202       69       6,271  
Managed services     2,192       -       2,192  
Total   $ 13,450     $ 500     $ 13,950  

 

    Three months ended March 31, 2016  
    Domestic     Foreign     Total  
Revenues by Segment by Geographic Region                  
Applications and infrastructure   $ 5,044     $ 191     $ 5,235  
Professional services     6,488       32       6,520  
Managed services     5,874       -       5,874  
Total   $ 17,406     $ 223     $ 17,629  

 

    Three months ended March 31, 2017  
    Domestic     Foreign     Total  
Gross Profit by Segment by Geographic Region                  
Applications and infrastructure   $ 1,280     $ 192     $ 1,472  
Professional services     1,422       16       1,438  
Managed services     457       -       457  
Total   $ 3,159     $ 208     $ 3,367  

 

    Three months ended March 31, 2016  
    Domestic     Foreign     Total  
Gross Profit by Segment by Geographic Region                  
Applications and infrastructure   $ 683     $ 43     $ 726  
Professional services     1,447       6       1,453  
Managed services     2,235       -       2,235  
Total   $ 4,365     $ 49     $ 4,414  

 

    Three months ended March 31, 2017  
    Domestic     Foreign     Total  
Operating Income (Loss) by Segment by Geographic Region                  
Applications and infrastructure   $ 108     $ 157     $ 265  
Professional services     (4,137 )     22       (4,115 )
Managed services     (735 )     -       (735 )
Corporate     (2,679 )     -       (2,679 )
Total   $ (7,443 )   $ 179     $ (7,264 )

 

    Three months ended March 31, 2016  
    Domestic     Foreign     Total  
Operating Income (Loss) by Segment by Geographic Region                  
Applications and infrastructure   $ (475 )   $ 22     $ (453 )
Professional services     (128 )     2       (126 )
Managed services     154       -       154  
Corporate     (3,117 )     -       (3,117 )
Total   $ (3,566 )   $ 24     $ (3,542 )