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Note 16 - Segment Information | 9 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 16. Segment Information: ​ The Company distributes software developed by others through resellers indirectly to customers worldwide. We also resell computer software and hardware developed by others and provide technical services directly to customers worldwide. ​ FASB ASC Topic 280, “Segment Reporting,” requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s Chief Executive Officer, who has been identified as the Company’s CODM, primarily uses operating income as the measure of profit or loss to assess segment performance and allocate resources. Operating income represents net sales less costs of sales, excluding depreciation and amortization expense and operating expenses. Net sales and cost of sales, excluding depreciation and amortization expense are directly attributed to each segment. The majority of operating expenses are also directly attributed to each segment, while certain other operating expenses are allocated to the segments in a reasonable manner considering the specific facts and circumstances of the expenses being allocated. ​ The Company is organized into two reportable operating segments. The “Distribution” segment distributes technical software to corporate resellers, value added resellers (VARs), consultants and systems integrators worldwide. The “Solutions” segment is a provider of cloud solutions and value-added reseller of software, hardware and services to customers worldwide. The Company's reportable segments are based on products and services delivered, and the Company's CODM decides how to assess performance and allocate resources based on segment. ​ Segment income is based on segment revenue less the respective segment’s cost of revenues as well as segment direct costs (including such items as payroll costs and payroll related costs, such as profit sharing, incentive awards and insurance) and excluding general and administrative expenses not attributed to an individual segment business unit. The Company only identifies accounts receivable, vendor prepayments, inventory, goodwill and intangible assets by segment as shown below as “Selected Assets” by segment; it does not allocate its other assets, including capital expenditures by segment. The following segment reporting information of the Company is provided: ​
​ |  | Nine months ended |  |  | Three months ended |
​ |  | September 30, |  |  | September 30, |
​ |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Net Sales: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Distribution |  | $ | 286,523 |  |  | $ | 226,905 |  |  | $ | 111,861 |  |  | $ | 72,227 |
Solutions |  |  | 17,324 |  |  |  | 18,324 |  |  |  | 7,488 |  |  |  | 6,230 |
​ |  |  | 303,847 |  |  |  | 245,229 |  |  |  | 119,349 |  |  |  | 78,457 |
Gross Profit: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Distribution |  | $ | 51,454 |  |  | $ | 35,472 |  |  | $ | 21,557 |  |  | $ | 11,671 |
Solutions |  |  | 8,379 |  |  |  | 7,704 |  |  |  | 2,700 |  |  |  | 2,603 |
​ |  |  | 59,833 |  |  |  | 43,176 |  |  |  | 24,257 |  |  |  | 14,274 |
Direct Costs: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Distribution |  | $ | 23,342 |  |  | $ | 15,225 |  |  | $ | 8,430 |  |  | $ | 5,249 |
Solutions |  |  | 4,013 |  |  |  | 3,844 |  |  |  | 1,330 |  |  |  | 1,226 |
​ |  |  | 27,355 |  |  |  | 19,069 |  |  |  | 9,760 |  |  |  | 6,475 |
Segment Income Before Taxes: (1) |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Distribution |  | $ | 28,112 |  |  | $ | 20,247 |  |  | $ | 13,127 |  |  | $ | 6,422 |
Solutions |  |  | 4,366 |  |  |  | 3,860 |  |  |  | 1,370 |  |  |  | 1,377 |
Segment Income Before Taxes |  |  | 32,478 |  |  |  | 24,107 |  |  |  | 14,497 |  |  |  | 7,799 |
​ |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
General and administrative |  | $ | 12,078 |  |  | $ | 12,861 |  |  | $ | 4,177 |  |  | $ | 3,647 |
Acquisition related costs |  |  | 1,201 |  |  |  | 277 |  |  |  | 609 |  |  |  | 246 |
Depreciation and amortization expense |  |  | 2,933 |  |  |  | 1,934 |  |  |  | 1,197 |  |  |  | 617 |
Interest, net |  |  | 755 |  |  |  | 760 |  |  |  | 198 |  |  |  | 318 |
Foreign currency transaction loss |  |  | (688 | ) |  |  | (100 | ) |  |  | (442 | ) |  |  | (140 | )
Change in fair value of acquisition contingent consideration |  |  | (1,152 | ) |  |  | — |  |  |  | (1,152 | ) |  |  | — |
Income before taxes |  | $ | 15,181 |  |  | $ | 9,695 |  |  | $ | 7,118 |  |  | $ | 3,467 |
(1) | Excludes general corporate expenses including interest and foreign currency transaction loss
​
​ |  | As of |  |  | As of |
​ |  | September 30, |  |  | December 31, |
Selected Assets by Segment: |  | 2024 |  |  | 2023 |
​ |  | ​ |  |  | ​ |
Distribution |  | $ | 306,914 |  |  | $ | 242,927 |
Solutions |  |  | 21,860 |  |  |  | 37,992 |
Segment Select Assets |  |  | 328,774 |  |  |  | 280,919 |
Corporate Assets |  |  | 43,166 |  |  |  | 54,179 |
Total Assets |  | $ | 371,940 |  |  | $ | 335,098 |
Geographic areas and net sales mix related to operations for the three and nine months ended September 30, 2024 and 2023 were as follows. Revenue is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. ​
|  | Nine months ended |  |  | Three months ended |
|  | September 30, 2024 |  |  | September 30, 2024 |
​ |  | Distribution |  |  | Solutions |  |  | Total |  |  | Distribution |  |  | Solutions |  |  | Total |
Geography |  |  |  |  |  |  |  |  |  | ​ |  |  |  |  |  |  |  |  |  |  | ​ |
USA |  | $ | 208,462 |  |  | $ | 6,808 |  |  | $ | 215,270 |  |  | $ | 78,012 |  |  | $ | 3,818 |  |  | $ | 81,830 |
Europe and United Kingdom |  |  | 62,135 |  |  |  | 9,702 |  |  |  | 71,837 |  |  |  | 29,494 |  |  |  | 3,418 |  |  |  | 32,912 |
Canada |  |  | 15,926 |  |  |  | 814 |  |  |  | 16,740 |  |  |  | 4,355 |  |  |  | 252 |  |  |  | 4,607 |
Total net sales |  | $ | 286,523 |  |  | $ | 17,324 |  |  | $ | 303,847 |  |  | $ | 111,861 |  |  | $ | 7,488 |  |  | $ | 119,349 |
​ |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  | ​ |  |  |  |  |  |  |  |  |  |  | ​ |
Transferred at a point in time where the Company is principal (1) |  | $ | 253,027 |  |  | $ | 10,969 |  |  | $ | 263,996 |  |  | $ | 101,561 |  |  | $ | 5,074 |  |  | $ | 106,635 |
Transferred at a point in time where the Company is agent (2) |  |  | 33,496 |  |  |  | 6,355 |  |  |  | 39,851 |  |  |  | 10,300 |  |  |  | 2,414 |  |  |  | 12,714 |
Total net sales |  | $ | 286,523 |  |  | $ | 17,324 |  |  | $ | 303,847 |  |  | $ | 111,861 |  |  | $ | 7,488 |  |  | $ | 119,349 |
|  | Nine months ended |  |  | Three months ended |
|  | September 30, 2023 |  |  | September 30, 2023 |
​ |  | Distribution |  |  | Solutions |  |  | Total |  |  | Distribution |  |  | Solutions |  |  | Total |
Geography |  |  |  |  |  |  |  |  |  | ​ |  |  |  |  |  |  |  |  |  |  | ​ |
USA |  | $ | 180,278 |  |  | $ | 9,908 |  |  | $ | 190,186 |  |  | $ | 60,891 |  |  | $ | 3,605 |  |  | $ | 64,496 |
Europe and United Kingdom |  |  | 28,903 |  |  |  | 7,508 |  |  |  | 36,411 |  |  |  | 6,353 |  |  |  | 2,418 |  |  |  | 8,771 |
Canada |  |  | 17,724 |  |  |  | 908 |  |  |  | 18,632 |  |  |  | 4,983 |  |  |  | 207 |  |  |  | 5,190 |
Total net sales |  | $ | 226,905 |  |  | $ | 18,324 |  |  | $ | 245,229 |  |  | $ | 72,227 |  |  | $ | 6,230 |  |  | $ | 78,457 |
​ |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Timing of Revenue Recognition |  |  |  |  |  |  |  |  |  | ​ |  |  |  |  |  |  |  |  |  |  | ​ |
Transferred at a point in time where the Company is principal (1) |  | $ | 200,027 |  |  | $ | 13,290 |  |  | $ | 213,317 |  |  | $ | 63,587 |  |  | $ | 4,422 |  |  | $ | 68,009 |
Transferred at a point in time where the Company is agent (2) |  |  | 26,878 |  |  |  | 5,034 |  |  |  | 31,912 |  |  |  | 8,640 |  |  |  | 1,808 |  |  |  | 10,448 |
Total net sales |  | $ | 226,905 |  |  | $ | 18,324 |  |  | $ | 245,229 |  |  | $ | 72,227 |  |  | $ | 6,230 |  |  | $ | 78,457 |
(1) | Includes net sales from third-party hardware and software products.
​
(2) | Includes net sales from third-party maintenance, software support and services.
​ Geographic identifiable assets related to operations as of September 30, 2024 and December 31, 2023 were as follows. ​
​ |  | September 30, |  |  | December 31, |
Identifiable Assets by Geographic Areas |  | 2024 |  |  | 2023 |
USA |  | $ | 226,717 |  |  | $ | 171,080 |
Canada |  |  | 25,345 |  |  |  | 23,994 |
Europe and United Kingdom |  |  | 119,878 |  |  |  | 140,024 |
Total |  | $ | 371,940 |  |  | $ | 335,098 |

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