Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic information

v3.2.0.727
Segment and Geographic information
 3 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment and Geographic information
Segment and Geographic information
In the fourth quarter of fiscal 2015, the Company made certain segment realignments in order to conform to the way the Company manages segment performance. This realignment was driven primarily by the acquisition of Appia on March 6, 2015.  The Company has recast prior period amounts to provide visibility and comparability.  None of these changes impacts the Company’s previously reported consolidated net revenue, gross margin, operating income, net income, or earnings per share.
The Company manages its business in four operating segments: Ignite, IQ, Appia Core, and Content. The four operating segments have been aggregated into two reportable segments: Advertising and Content. Our chief operating decision maker does not evaluate operating segments using asset information.  The Company has considered guidance in Accounting Standards Codification (ASC) 280 in reaching its conclusion with respect to aggregating its operating segments into two reportable segments.  Specifically, the Company has evaluated guidance in ASC 280-10-50-11and determined that aggregation is consistent with the objectives of ASC 280 in that aggregation into two reportable segments allows users of our financial statements to view the Company’s business through the eyes of management based upon the way management reviews performance and makes decisions.  Additional factors that were considered included: whether or not the operating segments have similar economic characteristics, the nature of the products/services under each operating segment, the nature of the production/go to market process, the type and geographic location of our customers, and the distribution of our products/services.
The following information sets forth segment information on our net sales and loss from operations for the three month periods ended June 30, 2015 and 2014.
 
 
Content
 
Advertising
 
Total
Three Months Ended June 30, 2015
 
 
 
 
 
 
Net revenues
 
$
7,070

 
$
11,616

 
$
18,686

Loss from operations
 
(2,005
)
 
(5,146
)
 
(7,151
)
Three Months Ended June 30, 2014
 
 

 
 

 
 

Net revenues
 
4,875

 
679

 
5,554

Loss from operations
 
$
(2,943
)
 
$
(1,737
)
 
$
(4,680
)

The following information sets forth geographic information on our net sales for the three month period ended June 30, 2015 and 2014. Net revenues by geography are based on billing addresses of our customers. Our largest customer accounted for 26.5% and 64.4% of net revenues in the 3 month period ended June 30, 2015 and 2014, respectively.
 
 
Three Months Ended June 30,
 
 
2015
 
2014
Net revenue
 
 
 
 
North America
 
$
11,515

 
$
—

EMEA
 
267

 
670

APAC
 
6,904

 
4,884

Consolidated net revenue
 
$
18,686

 
$
5,554