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Note 17 - Segment Information
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

17.          Segment Information:

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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.

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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, evaluates the performance of both reportable segments based on operating income. Net sales, gross profit, and operating expenses are also monitored closely. This information is used to measure segment profitability, allocate resources, and make budgeting and forecasting decisions about the reportable segments. The CODM also uses these measures to monitor trends in year over year performance comparisons, sequential quarter performance comparisons, and to compare actual results to forecasts. More disaggregated information about operating expense is generally only reviewed by the CODM on a consolidated basis. 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.

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The Company is organized into two reportable operating segments. The “Distribution” segment distributes technical software to corporate 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.

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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:

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Six months ended

  

Three months ended

 

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June 30,

  

June 30,

 

​

 

2025

  

2024

  

2025

  

2024

 

Net Sales:

 

​

  

​

  

​

  

​

 

Distribution

 $285,172  $174,663  $153,010  $87,842 

Solutions

  12,156   9,835   6,274   4,234 

​

  297,328   184,498   159,284   92,076 

Cost of Sales:

 

​

  

​

  

​

  

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Distribution

 $241,725  $144,765  $129,962  $72,159 

Solutions

  5,899   4,156   3,014   1,359 

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  247,624   148,921   132,976   73,518 

Direct Costs:

 

​

  

​

  

​

  

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Distribution

 $20,119  $14,912  $10,106  $7,535 

Solutions

  3,102   2,683   1,613   1,302 

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  23,221   17,595   11,719   8,837 

Segment Income: (1)

 

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Distribution

 $23,328  $14,986  $12,942  $8,148 

Solutions

  3,155   2,996   1,647   1,573 

Segment Income

  26,483   17,982   14,589   9,721 

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General and administrative

 $9,891  $7,901  $4,638  $4,137 

Acquisition related costs

  139   592   13   469 

Depreciation and amortization expense

  3,720   1,736   1,982   865 

Interest, net

  337   557   151   354 

Foreign currency transaction (loss) gain

  (567)  (246)  14   (162)

Change in fair value of acquisition contingent consideration

  (515)  —   (379)  — 

Income before taxes

 $11,988  $8,064  $7,742  $4,442 

 

(1)

Excludes general corporate expenses including acquisition related costs, amortization and depreciation expense, interest, foreign currency transaction (loss) gain, and change in fair value of acquisition contingent consideration.

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As of

  

As of

 

​

 

June 30,

  

December 31,

 

Selected Assets by Segment:

 

2025

  

2024

 

​

 

​

  

​

 

Distribution

 $343,280  $394,809 

Solutions

  23,349   21,882 

Segment Select Assets

  366,629   416,691 

Corporate Assets

  54,062   52,488 

Total Assets

 $420,691  $469,179 

 

Geographic areas and net sales mix related to operations for the three and six months ended June 30, 2025 and 2024 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.

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Six months ended

  

Three months ended

 
  

June 30, 2025

  

June 30, 2025

 

​

 

Distribution

  

Solutions

  

Total

  

Distribution

  

Solutions

  

Total

 

Geography

         

​

          

​

 

USA

 $219,450  $4,180  $223,630  $114,362  $2,226  $116,588 

Europe and United Kingdom

  50,406   7,596   58,002   31,813   3,816   35,629 

Canada

  15,316   380   15,696   6,835   232   7,067 

Total net sales

 $285,172  $12,156  $297,328  $153,010  $6,274  $159,284 

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​

  

​

  

​

  

​

  

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Timing of Revenue Recognition

         

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​

 

Transferred at a point in time where the Company is principal (1)

 $259,164  $8,765  $267,929  $140,176  $4,466  $144,642 

Transferred at a point in time where the Company is agent (2)

  26,008   3,391   29,399   12,834   1,808   14,642 

Total net sales

 $285,172  $12,156  $297,328  $153,010  $6,274  $159,284 

 

  

Six months ended

  

Three months ended

 
  

June 30, 2024

  

June 30, 2024

 

​

 

Distribution

  

Solutions

  

Total

  

Distribution

  

Solutions

  

Total

 

Geography

         

​

          

​

 

USA

 $130,450  $2,989  $133,439  $68,087  $1,081  $69,168 

Europe and United Kingdom

  32,642   6,284   38,926   14,357   2,877   17,234 

Canada

  11,571   562   12,133   5,398   276   5,674 

Total net sales

 $174,663  $9,835  $184,498  $87,842  $4,234  $92,076 

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Timing of Revenue Recognition

         

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​

 

Transferred at a point in time where the Company is principal (1)

 $151,467  $5,894  $157,361  $75,735  $2,336  $78,071 

Transferred at a point in time where the Company is agent (2)

  23,196   3,941   27,137   12,107   1,898   14,005 

Total net sales

 $174,663  $9,835  $184,498  $87,842  $4,234  $92,076 

 

(1)

Includes net sales from third-party hardware and software products.

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(2)

Includes net sales from third-party maintenance, software support and services.

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Geographic identifiable assets related to operations as of  June 30, 2025 and  December 31, 2024 were as follows.

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June 30,

  

December 31,

 

Identifiable Assets by Geographic Areas

 

2025

  

2024

 

USA

 $242,719  $278,957 

Canada

  29,308   34,352 

Europe and United Kingdom

  148,664   155,870 

Total

 $420,691  $469,179