Annual report pursuant to Section 13 and 15(d)

Business Segments Information / Major Customers

v2.4.1.9
Business Segments Information / Major Customers
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Business Segment Information / Major Customers
Business Segment Information / Major Customers
The Company previously had two reportable segments consisting of 1) its enterprise video content management software business and 2) its disc publishing business.
At a special meeting of the Company's shareholders held on June 27, 2014, the Company's shareholders approved the sale of the disc publishing assets as contemplated by an asset purchase agreement entered into on April 24, 2014 between the Company and Equus Holdings, Inc. and Redwood Acquisition, Inc. (now known as Rimage Corporation). On July 1, 2014, the sale was completed.
On October 3, 2014, the Company entered into Share Purchase Agreements to acquire 100% of the outstanding shares of Kulu Valley Ltd., a private limited company incorporated in England and Wales (“Kulu”). The acquisition was made to expand Qumu’s addressable market through the offering of Kulu Valley’s best-in-class video content creation capabilities and easy-to-deploy pure cloud solution, and provides Kulu’s customers with access to industry leading video content management and delivery capability.
As a result of the sale of its disc publishing business and expansion of its video content management business with the acquisition of Kulu, the Company has one reportable segment, the enterprise video content management software business. Qumu’s enterprise video content management software business provides the tools businesses need to create, manage, secure, deliver and measure the success of their videos. Qumu helps organizations around the world enhance the way they communicate and realize the greatest possible value from video and other rich content they create and publish. Qumu's video platform supports both live and on-demand streaming, and also incorporates secure download capabilities. The Company markets its products to customers in North America, Europe and Asia.

The following represents sales amounts and related accounts receivable balances generated by the Company’s unaffiliated customers that provided more than 10% of consolidated revenues (in thousands):
 
 
Years Ended December 31,
Revenues
 
2014
 
2013
 
2012
Customer A
 
*
 
$
1,941

 
*
* Sales of customer did not exceed 10%
 
 
December 31,
Accounts Receivable
 
2014
 
2013
 
2012
Customer A
 
*
 
$
294

 
*

The Company’s revenues from each of its principal geographic regions are presented based on customer location as follows (in thousands):
 
 
Years Ended December 31,
 
 
2014
 
2013
 
2012
North America
 
$
22,634

 
$
13,273

 
$
8,657

Europe
 
2,712

 
4,463

 
1,179

Asia
 
1,175

 

 

Total
 
$
26,521

 
$
17,736

 
$
9,836


Net property and equipment of the Company were located as follows (in thousands):
 
 
December 31,
 
 
2014
 
2013
North America
 
$
1,748

 
$
1,379

Europe
 
132

 

Asia
 
19

 

Total
 
$
1,899

 
$
1,379


The Company’s revenues from each of its principal products and services were as follows (in thousands):
 
2014
 
2013
 
Inc (Dec)
2012
 
Inc (Dec)
 
$
%
$
%
Between Periods
$
%
Between Periods
Software licenses and appliances
$
11,363

43
%
$
7,269

41
%
$
4,094

56
%
$
4,319

44
%
$
2,950

68
%
Service
15,158

57
%
10,467

59
%
4,691

45
%
5,517

56
%
4,950

90
%
Total revenues
$
26,521

100
%
$
17,736

100
%
$
8,785

50
%
$
9,836

100
%
$
7,900

80
%