Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.3.1.900
Segment and Geographic Information
 9 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
In the fourth quarter of fiscal year 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 280-10-50-11 and 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 include: 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 types and geographic locations 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 and nine months ended December 31, 2015 and 2014, respectively.
 
 
Content
 
Advertising
 
Total
Three months ended December 31, 2015
 
 
 
 
 
 
Net revenues
 
$
6,641

 
$
17,448

 
$
24,089

Loss from operations
 
(1,083
)
 
(4,182
)
 
(5,265
)
Three months ended December 31, 2014
 
 
 
 
 
 
Net revenues
 
$
5,139

 
$
1,867

 
$
7,006

Loss from operations
 
$
(3,708
)
 
$
(1,683
)
 
$
(5,391
)
 
 
Content
 
Advertising
 
Total
Nine months ended December 31, 2015
 
 
 
 
 
 
Net revenues
 
$
20,782

 
$
42,727

 
$
63,509

Loss from operations
 
(6,600
)
 
(13,960
)
 
(20,560
)
Nine months ended December 31, 2014
 
 

 
 

 
 

Net revenues
 
15,474

 
2,549

 
18,023

Loss from operations
 
$
(8,751
)
 
$
(5,963
)
 
$
(14,714
)
The following information sets forth geographic information on our net sales for the three and nine months ended December 31, 2015 and 2014. Net revenues by geography are based on the billing addresses of our customers. Our largest customer accounted for 22.0% and 26.6% of net revenues in the three and nine months ended December 31, 2015 and 44.7% and 53.1% in the three and nine months ended December 31, 2014, respectively.
 
 
Three Months Ended December 31,
 
 
2015
 
2014
Net revenues
 
 
 
 
United States & Canada
 
$
9,062

 
$
1,731

Europe, Middle East, & Africa
 
5,159

 
517

Asia Pacific & China
 
9,769

 
4,758

Mexico, Central America, & South America
 
99

 
—

Consolidated net revenues
 
$
24,089

 
$
7,006


 
 
Nine Months Ended December 31,
 
 
2015
 
2014
Net revenues
 
 
 
 
United States & Canada
 
$
22,330

 
$
2,323

Europe, Middle East, & Africa
 
11,851

 
1,875

Asia Pacific & China
 
28,979

 
13,825

Mexico, Central America, & South America
 
349

 
—

Consolidated net revenues
 
$
63,509

 
$
18,023