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Segment Reporting and Geographic Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting and Geographic Information

(6) Segment Reporting and Geographic Information

Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally for the Company’s management. In July 2013, the Company sold certain assets related to Archeo’s pay per click advertising services. As a result, the operating results related to these certain pay per click assets are shown as discontinued operations, net of tax in the condensed consolidated statements of operations for all periods presented and are excluded from segment reporting. See Note15. Discontinued Operations for further discussion.

The Company’s Call-driven segment comprises its performance-based advertising business focused on driving phone calls. The Archeo segment comprises the Company’s click-based advertising and Internet domain name businesses. Call-driven segment expenses include both direct costs incurred by the segment business as well as corporate overhead costs. Archeo segment expenses only include direct costs incurred by the segment. Segment expenses exclude the following: stock-based compensation, amortization of intangible assets from acquisitions, separation related costs, and other income (expense).

A measure of segment assets is not currently provided to the Company’s chief operating decision maker and has therefore not been disclosed. The carrying amount of goodwill by operating segment at March 31, 2014 was approximately $63.3 million and $2.4 million for Call-driven and Archeo, respectively.

 

Selected segment information (in thousands):

 

     Three months ended March 31, 2014  
     Call-driven      Archeo      Total  

Revenue

    $ 45,492       $ 5,004       $ 50,496   

Operating expenses

      43,081         2,693         45,774   
  

 

 

     

 

 

     

 

 

  

Segment profit

    $ 2,411       $ 2,311       $ 4,722   

Less reconciling items:

      

Stock based compensation

         2,883   

Amortization of intangible assets from acquisitions

         403   

Other expense (income)

         2   
        

 

 

  

Income from continuing operations before provision for income taxes

       $ 1,434   
        

 

 

  
     Three months ended March 31, 2013  
     Call-driven      Archeo      Total  

Revenue

    $ 31,108       $ 3,624       $ 34,732   

Operating expenses

      29,737         2,753         32,490   

Gain on sales of intangible assets, net

      —          1,362         1,362   
  

 

 

     

 

 

     

 

 

  

Segment profit

    $ 1,371       $ 2,233       $ 3,604   

Less reconciling items:

      

Stock based compensation

            1,907   

Amortization of intangible assets from acquisitions

            1,055   

Separation related costs

            345   

Other expense (income)

            17   
        

 

 

  

Income from continuing operations before provision for income taxes

          $ 280   
        

 

 

  

Revenues from advertisers by geographical areas are tracked on the basis of the location of the advertiser. The vast majority of the Company’s revenue and accounts receivable are derived from domestic sales to advertisers engaged in various mobile, online and other activities.

Revenues by geographic region are as follows (in percentages):

 

     Three months ended
March 31,		  
     2013     2014  

United States

      94 %      96 % 

Canada

      6 %      4 % 

Other countries

      *        *   
  

 

 

    

 

 

  
     100 %      100 % 
  

 

 

    

 

 

  

 

* Less than 1% of revenue.