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SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 1. Organization and Summary of Significant Accounting Policies (Continued)
Segment Information
The Company conducts its business in one segment: providing software and related services that automate the resolution of
technology problems. Revenue from customers located outside the United States was approximately $10.3 million, $12.9 million, and
$6.4 million for the years ended December 31, 2006, 2005, and 2004, respectively.
Sales by the Company to customers in different geographic areas, expressed as a percentage of revenue, for the periods ended
were:
Year Ended
December 31,
2006 2005 2004
Americas 78% 80% 91%
Asia Pacific 1 1 1
Europe, the Middle East, and Africa 21 19 8
Total 100% 100% 100%
Sales by the Company to customers that exceeded 10% of our total revenue, expressed as a percentage of total revenue, in each of
the years in the three year period ended December 31, 2006 were:
Year Ended
December 31,
2006 2005 2004
Customer A — — 13%
Customer B — — 10%
Customer C — — —
Note 2. Property and Equipment
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
2006 2005
Computer equipment and software $ 10,763 $ 10,092
Furniture and office equipment 658 615
11,421 10,707
Accumulated depreciation (10,484) (9,496)
$ 937 $ 1,211
Depreciation expense was $988,000, $1.1 million, and $766,000, for the years ended December 31, 2006, 2005, and 2004,
respectively.
Note 3. Business Combinations
On September 2, 2004, as part of the Company’s strategy to expand our product portfolio, the Company acquired substantially all
of the assets of Core Networks Incorporated and certain liabilities for approximately $16.9 million in cash (the “Acquisition”).
Accordingly, the operations of Core Networks have been included in the accompanying consolidated statements of operations from
September 2, 2004
59
Source: SUPPORTSOFT INC, 10−K, March 16, 2007