Operating Segments

6 Months Ended

Dec. 31, 2011

Operating Segments [Abstract]

Operating Segments

15. Operating segments

     A description of the Company's operating segments is contained in note 19 to the Company's audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended June 30, 2011.

     The Company has reallocated its EP Kiosk business unit to the South African transaction-based activities segment from the hardware, software and related technology segment, as the unit is no longer in pilot phase and now forms part of EasyPay. Following XeoHealth's first contract signing, the Company has allocated its revenue and costs to the international transaction-based activities segment, which were previously included in the South African transaction-based activities segment. Revenue and administration costs related to the Company's comprehensive financial services offerings are all included in the financial services segment. The effect of these reallocations has not significantly impacted the Company's reported results. Restated amounts for the three months ended December 31, 2010, also include the effects of reallocating the Company's initiatives in Iraq, Nigeria and Net1 VCC. The impact of these reallocations on the Company's revenue, operating income (loss) and net income (loss) for the three months ended December 31, 2010, is presented in the table below:

	Three months ended December 31, 2010
	Restated			As previously reported			Difference
Revenues to external customers
SA transaction-based activities	$	46,737		$	46,588		$	149
International transaction-based activities		17,385			16,950			435
Smart card accounts		8,434			8,434			-
Financial services		1,651			1,623			28
Hardware, software and related technology sales		14,804			15,416			(612	)
Total		89,011			89,011			-
Operating income (loss)
SA transaction-based activities		18,578			18,547			31
International transaction-based activities		139			327			(188	)
Smart card accounts		3,832			3,832			-
Financial services		1,028			1,231			(203	)
Hardware, software and related technology sales		(49	)		(319	)		270
Corporate/Eliminations		(1,554	)		(1,644	)		90
Total		21,974			21,974			-
Net income (loss)
SA transaction-based activities		13,411			13,215			196
International transaction-based activities		(307	)		3			(310	)
Smart card accounts		2,759			2,759			-
Financial services		739			885			(146	)
Hardware, software and related technology sales		(177	)		(435	)		258
Corporate/Eliminations		(6,477	)		(6,479	)		2
Total	$	9,948		$	9,948		$	-

     The impact of these reallocations on the Company's revenue, operating income (loss) and net income (loss) for the six months ended December 31, 2010, is presented in the table below:

	Six months ended December 31, 2010
	Restated			As previously reported			Difference
Revenues to external customers
SA transaction-based activities	$	91,626		$	91,480		$	146
International transaction-based activities		17,855			16,950			905
Smart card accounts		16,404			16,404			-
Financial services		2,901			2,871			30
Hardware, software and related technology sales		24,508			25,589			(1,081	)
Total	$	153,294		$	153,294		$	-
Operating income (loss)
SA transaction-based activities	$	36,326		$	36,323		$	3
International transaction-based activities		(569	)		327			(896	)
Smart card accounts		7,454			7,454			-
Financial services		1,825			2,160			(335	)
Hardware, software and related technology sales		(2,388	)		(2,979	)		591
Corporate/Eliminations		(9,688	)		(10,325	)		637
Total		32,960			32,960			-
Net income (loss)
SA transaction-based activities		26,217			25,838			379
International transaction-based activities		(1,173	)		3			(1,176	)
Smart card accounts		5,369			5,369			-
Financial services		1,312			1,554			(242	)
Hardware, software and related technology sales		(2,005	)		(2,496	)		491
Corporate/Eliminations		(12,343	)		(12,891	)		548
Total	$	17,377		$	17,377		$	-

The following tables summarize segment information which is prepared in accordance with GAAP:

Three months ended December 31,						Six months ended December 31,
	2011			2010			2011		2010
Revenues to external customers
SA transaction-based activities	$	46,448		$	46,737		$	96,350	$	91,626
International transaction-based activities		28,835			17,385			59,090		17,855
Smart card accounts		7,264			8,434			15,516		16,404
Financial services		1,944			1,651			4,055		2,901
Hardware, software and related technology sales		7,567			14,804			16,973		24,508
Total		92,058			89,011			191,984		153,294
Inter-company revenues
SA transaction-based activities		864			1,002			1,977		1,938
International transaction-based activities		-			-			-		-
Smart card accounts		281			-			281		-
Financial services		-			-			-		-
Hardware, software and related technology sales		465			730			783		992
Total		1,610			1,732			3,041		2,930
Operating income (loss)
SA transaction-based activities		15,766			18,578			35,949		36,326
International transaction-based activities		241			139			925		(569	)
Smart card accounts		3,302			3,832			7,052		7,454
Financial services		1,026			1,028			2,437		1,825
Hardware, software and related technology sales		909			(49	)		2,846		(2,388	)
Corporate/Eliminations		(1,016	)		(1,554	)		1,865		(9,688	)
Total		20,228			21,974			51,074		32,960
Interest earned
SA transaction-based activities		-			-			-		-
International transaction-based activities		-			-			-		-
Smart card accounts		-			-			-		-
Financial services		-			-			-		-
Hardware, software and related technology sales		-			-			-		-
Corporate/Eliminations		1,820			1,350			3,817		4,434
Total	$	1,820		$	1,350		$	3,817	$	4,434

	Three months ended December 31,						Six months ended December 31,
	2011			2010			2011			2010
Interest expense
SA transaction-based activities	$	112		$	192		$	188		$	348
International transaction-based activities		-			109			44			179
Smart card accounts		-			-			-			-
Financial services		2			-			2			-
Hardware, software and related technology sales		13			27			23			28
Corporate/Eliminations		2,228			3,102			4,714			3,123
Total		2,355			3,430			4,971			3,678
Depreciation and amortization
SA transaction-based activities		2,109			2,298			4,251			4,474
International transaction-based activities		6,270			3,885			12,919			3,899
Smart card accounts		-			-			-			-
Financial services		74			138			191			271
Hardware, software and related technology sales		150			2,561			321			4,982
Corporate/Eliminations		187			210			187			370
Total		8,790			9,092			17,869			13,996
Income taxation expense
SA transaction-based activities		4,383			4,974			10,014			9,759
International transaction-based activities		291			303			626			424
Smart card accounts		924			1,073			1,975			2,087
Financial services		282			287			676			510
Hardware, software and related technology sales		216			120			656			(386	)
Corporate/Eliminations		(11,474	)		3,079			(8,773	)		3,649
Total		(5,378	)		9,836			5,174			16,043
Net income (loss)
SA transaction-based activities		11,270			13,411			25,747			26,217
International transaction-based activities		120			(307	)		553			(1,173	)
Smart card accounts		2,377			2,759			5,077			5,369
Financial services		724			739			1,740			1,312
Hardware, software and related technology sales		678			(177	)		2,164			(2,005	)
Corporate/Eliminations		9,925			(6,477	)		9,581			(12,343	)
Total		25,094			9,948			44,862			17,377
Expenditures for long-lived assets
SA transaction-based activities		1,196			742			1,784			1,284
International transaction-based activities		3,704			3,087			7,455			3,238
Smart card accounts		-			-			-			-
Financial services		144			157			217			216
Hardware, software and related technology sales		76			25			130			41
Corporate/Eliminations		-			-			-			-
Total	$	5,120		$	4,011		$	9,586		$	4,779

     The segment information as reviewed by the chief operating decision maker does not include a measure of segment assets per segment as all of the significant assets are used in the operations of all, rather than any one, of the segments. The Company does not have dedicated assets assigned to a particular operating segment. Accordingly, it is not meaningful to attempt an arbitrary allocation and segment asset allocation is therefore not presented.

     It is impractical to disclose revenues from external customers for each product and service or each group of similar products and services.