Quarterly report pursuant to Section 13 or 15(d)

Segments

v3.7.0.1
Segments
6 Months Ended
Jun. 30, 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 (sold by the Company in May 2017). 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.

 

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

 

    Three months ended
June 30,
    Six months ended 
June 30,
 
    2017     2016     2017     2016  
                         
Revenue by Segment                        
Applications and infrastructure   $ 594     $ 6,597     $ 6,081     $ 11,832  
Professional services     4,874       11,825       11,145       18,345  
Managed services     2,653       4,172       4,845       10,046  
Total   $ 8,121     $ 22,594     $ 22,071     $ 40,223  

 

    Three months ended
June 30,
    Six months ended 
June 30,
 
    2017     2016     2017     2016  
                         
Gross Profit by Segment                                
Applications and infrastructure   $ 187     $ 1,127     $ 1,659     $ 1,853  
Professional services     678       2,922       2,116       4,375  
Managed services     763       1,170       1,220       3,405  
Total   $ 1,628     $ 5,219     $ 4,995     $ 9,633  

 

    Three months ended
June 30,
    Six months ended 
June 30,
 
    2017     2016     2017     2016  
                         
Operating Income (Loss) by Segment                                
Applications and infrastructure   $ (1,151 )   $ (198 )   $ (886 )   $ (651 )
Professional services     (270 )     983       (4,386 )     857  
Managed services     (307 )     (1,198 )     (1,042 )     (1,044 )
Corporate     (2,177 )     (3,905 )     (4,856 )     (7,022 )
Total   $ (3,905 )   $ (4,318 )   $ (11,170 )   $ (7,860 )

 

    Three months ended 
June 30,
    Six months ended 
June 30,
 
    2017     2016     2017     2016  
                         
Interest Expense by Segment                                
Applications and infrastructure   $ 5     $ 4     $ 11     $ 8  
Professional services     -       -       -       -  
Managed services     1       11       1       13  
Corporate     1,277       3,403       5,546       8,112  
Total   $ 1,283     $ 3,418     $ 5,558     $ 8,133  

 

    Three months ended
June 30,
    Six months ended 
June 30,
 
    2017     2016     2017     2016  
                         
Depreciation and Amortization Expense by Segment                                
Applications and infrastructure   $ 42     $ 212     $ 226     $ 424  
Professional services     64       128       164       255  
Managed services     153       210       307       421  
Corporate     5       6       10       12  
Total   $ 264     $ 556     $ 707     $ 1,112  

 

    June 30,
2017
    December 31, 2016  
Total Assets by Segment                
Applications and infrastructure   $ 5,377     $ 16,177  
Professional services     9,460       21,334  
Managed services     13,889       15,820  
Corporate     6,483       1,238  
Total   $ 35,209     $ 54,569  

 

    June 30,
2017
    December 31, 2016  
Goodwill by Segment                
Applications and infrastructure   $ 1,306     $ 6,906  
Professional services     2,919       10,081  
Managed services     5,960       6,381  
Total   $ 10,185     $ 23,368  

  

    Three months ended
June 30, 2017
    Six months ended
June 30, 2017
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Revenues by Segment by Geographic Region                                                
Applications and infrastructure   $ 594     $ -     $ 594     $ 5,650     $ 431     $ 6,081  
Professional services     4,877       (3 )     4,874       11,079       66       11,145  
Managed services     2,653       -       2,653       4,845       -       4,845  
Total   $ 8,124     $ (3 )   $ 8,121     $ 21,574     $ 497     $ 22,071  

 

    Three months ended
June 30, 2016
    Six months ended
June 30, 2016
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Revenues by Segment by Geographic Region                                                
Applications and infrastructure   $ 6,426     $ 171     $ 6,597     $ 11,470     $ 362     $ 11,832  
Professional services     11,729       96       11,825       18,217       128       18,345  
Managed services     4,172       -       4,172       10,046       -       10,046  
Total   $ 22,327     $ 267     $ 22,594     $ 39,733     $ 490     $ 40,223  

 

    Three months ended
June 30, 2017
    Six months ended
June 30, 2017
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Gross Profit by Segment by Geographic Region                                                
Applications and infrastructure   $ 187     $ -     $ 187     $ 1,467     $ 192     $ 1,659  
Professional services     722       (44 )     678       2,144       (28 )     2,116  
Managed services     763       -       763       1,220       -       1,220  
Total   $ 1,672     $ (44 )   $ 1,628     $ 4,831     $ 164     $ 4,995  

 

    Three months ended
June 30, 2016
    Six months ended
June 30, 2016
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Gross Profit by Segment by Geographic Region                                                
Applications and infrastructure   $ 808     $ 319     $ 1,127     $ 1,491     $ 362     $ 1,853  
Professional services     2,800       122       2,922       4,247       128       4,375  
Managed services     1,170       -       1,170       3,405       -       3,405  
Total   $ 4,778     $ 441     $ 5,219     $ 9,143     $ 490     $ 9,633  

 

    Three months ended
June 30, 2017
    Six months ended
June 30, 2017
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Operating Income (Loss) by Segment by Geographic Region                                                
Applications and infrastructure   $ (1,151 )   $ -     $ (1,151 )   $ (1,043 )   $ 157     $ (886 )
Professional services     (225 )     (45 )     (270 )     (4,363 )     (23 )     (4,386 )
Managed services     (307 )     -       (307 )     (1,042 )     -       (1,042 )
Corporate     (2,177 )     -       (2,177 )     (4,856 )     -       (4,856 )
Total   $ (3,860 )   $ (45 )   $ (3,905 )   $ (11,304 )   $ 134     $ (11,170 )

 

    Three months ended
June 30, 2016
    Six months ended
June 30, 2016
 
    Domestic     Foreign     Total     Domestic     Foreign     Total  
Operating Income (Loss) by Segment by Geographic Region                                                
Applications and infrastructure   $ (153 )   $ (45 )   $ (198 )   $ (628 )   $ (23 )   $ (651 )
Professional services     973       10       983       845       12       857  
Managed services     (1,198 )     -       (1,198 )     (1,044 )     -       (1,044 )
Corporate     (3,905 )     -       (3,905 )     (7,022 )     -       (7,022 )
Total   $ (4,283 )   $ (35 )   $ (4,318 )   $ (7,849 )   $ (11 )   $ (7,860 )