Annual report pursuant to Section 13 and 15(d)

Segment and Geographic Information

v3.5.0.1
Segment and Geographic Information
 12 Months Ended
Mar. 31, 2016
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 three operating segments: Operators and OEMs ("O&O"), Advertisers and Publishers, and Content. The three 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 Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Goodwill and intangibles are not included in this allocation.
The following information sets forth segment information on our net revenues and loss from operations for the years ended March 31, 2016, 2015, and 2014. During fiscal 2016 the company changed its methodology for how corporate operating expenses are allocated to the Company's Advertising and Content operating segments as the new method of allocation is deemed by management to be a more accurate representation for how the expenses relate to the operations and development of the Advertising and Content segments. Corporate operating expenses in fiscal 2015 were previously allocated between the Advertising and Content segments based on employee headcount. Corporate operating expenses in fiscal 2016 are now being allocated based on the percentage of revenue between Advertising and Content for the Company as a whole. Prior period fiscal 2015 figures presented have been updated to reflect these changes and are comparable to the fiscal 2016 figures presented.
 
 
Content
 
Advertising
 
Total
Year ended March 31, 2016
 
 
 
 
 
 
Net revenues
 
$
28,765

 
$
57,776

 
$
86,541

Loss from operations
 
$
(7,603
)
 
$
(18,333
)
 
$
(25,936
)
Year ended March 31, 2015
 
 
 
 
 
 
Net revenues
 
$
22,009

 
$
6,243

 
$
28,252

Loss from operations
 
$
(13,300
)
 
$
(10,437
)
 
$
(23,737
)
Year ended March 31, 2014
 
 
 
 
 
 
Net revenues
 
$
23,635

 
$
769

 
$
24,404

Loss from operations
 
$
(11,969
)
 
$
(3,555
)
 
$
(15,524
)

The following information sets forth geographic information on our net revenues and net property and equipment for the years ended March 31, 2016, 2015, and 2014. Revenues by geography are based on the billing addresses of our customers. The following table sets forth revenues and long-lived assets by geographic area. One major carrier customer in our Content business accounted for 26.1% of our consolidated net revenues during the year ended March 31, 2016, and this major carrier customer and another major carrier customer in our Content business accounted for 50.6% and 11.1% of our consolidated net revenues during the year ended March 31, 2015. During the year ended March 31, 2014, the two previously mentioned major customers and a third major customer represented 45.8%, 22.2%, and 10.5% of our consolidated net revenues.
 
 
Year Ended March 31,
 
 
2016
 
2015
 
2014
Net revenues
 
 
 
 
 
 
     United States & Canada
 
$
28,813

 
$
5,976

 
$
167

     Europe, Middle East, & Africa
 
15,587

 
2,202

 
4,060

     Asia Pacific & China
 
41,661

 
20,074

 
20,107

     Mexico, Central America, & South America
 
480

 
—

 
70

Consolidated net revenues
 
$
86,541

 
$
28,252

 
$
24,404

 
 
 
 
 
 
 
Property and equipment, net
 
 
 
 
 
 
     United States & Canada
 
$
1,376

 
$
289

 
$
68

     Europe, Middle East, & Africa
 
94

 
32

 
70

     Asia Pacific & China
 
314

 
293

 
327

     Mexico, Central America, & South America
 
—

 
—

 
—

Consolidated property and equipment, net
 
$
1,784

 
$
614

 
$
465