Operations by Segments and Geographic Areas (Tables)

9 Months Ended

Mar. 31, 2018

Schedule of Segment Reporting Information

Segment information for the three and nine months ended March 31, 2018 and 2017 according to the segment descriptions above, is as follows:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
	(in thousands)
Segment revenue:
Cloud Solutions ⁽¹⁾	$	46,486		$	39,248		$	133,448		$	112,837
Banking Solutions		22,900			18,294			65,175			55,944
Payments and Transactional Documents		27,124			24,107			75,516			73,768
Other		4,626			4,450			13,488			13,362

Total segment revenue	$	101,136		$	86,099		$	287,627		$	255,911

Segment measure of profit (loss):
Cloud Solutions	$	9,308		$	7,116		$	28,342		$	19,347
Banking Solutions		1,630			388			4,939			1,456
Payments and Transactional Documents		7,661			7,451			21,755			22,644
Other		(627	)		(570	)		(2,014	)		(1,928	)

Total measure of segment profit	$	17,972		$	14,385		$	53,022		$	41,519

⁽¹⁾

Revenues from our legal spend management solutions were $16.1 million and $14.9 million for the three months ended March 31, 2018 and 2017, respectively. Revenues from our settlement network solutions were $30.4 million and $24.3 million for the three months ended March 31, 2018 and 2017, respectively. Revenues from our legal spend management solutions were $47.6 million and $42.6 million for the nine months ended March 31, 2018 and 2017, respectively. Revenues from our settlement network solutions were $85.8 million and $70.2 million for the nine months ended March 31, 2018 and 2017, respectively.

Reconciliation of Measure of Segment Profit to GAAP Loss Before Income Taxes

A reconciliation of the measure of total segment profit to GAAP loss before income taxes is as follows:


	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
	(in thousands)
Total measure of segment profit	$	17,972		$	14,385		$	53,022		$	41,519
Less:
Amortization of acquisition-related intangible assets		(5,818	)		(6,006	)		(16,708	)		(18,381	)
Goodwill impairment charge		—			—			—			(7,529	)
Stock-based compensation expense		(8,592	)		(7,354	)		(25,132	)		(24,209	)
Acquisition and integration-related expenses		(224	)		(501	)		(1,596	)		(2,272	)
Restructuring expenses		(1,485	)		(561	)		(1,476	)		(561	)
Minimum pension liability adjustments		3			(264	)		(35	)		(805	)
Global ERP system implementation and other costs		(1,558	)		(2,076	)		(4,973	)		(6,673	)
Other expense, net		(1,293	)		(4,479	)		(9,288	)		(12,596	)

Loss before income taxes	$	(995	)	$	(6,856	)	$	(6,186	)	$	(31,507	)

Schedule of Segment Depreciation and Amortization Expense Included in Segment Measure of Profit (Loss)

The following depreciation and other amortization expense amounts are included in the measure of segment profit (loss):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(in thousands)
Depreciation and other amortization expense:
Cloud Solutions	$	2,671	$	2,274	$	7,649	$	5,974
Banking Solutions		1,605		1,498		4,634		4,304
Payments and Transactional Documents		722		803		2,066		2,357
Other		97		109		289		290

Total depreciation and other amortization expense	$	5,095	$	4,684	$	14,638	$	12,925

Schedule of Revenue Based on Point of Sale

We have presented geographic information about our revenues below. This presentation allocates revenue based on the point of sale, not the location of the customer. Accordingly, we derive revenues from geographic locations based on the location of the customer that would vary from the geographic areas listed here; particularly in respect of financial institution customers located in Australia for which the point of sale was North America and customers located in Africa for which the point of sale was the Middle East.


	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(in thousands)
North America	$	61,400	$	54,073	$	178,006	$	160,785
United Kingdom		24,388		20,096		66,927		60,240
Continental Europe		11,607		9,475		32,138		28,009
Asia-Pacific and Middle East		3,741		2,455		10,556		6,877

Total revenues from unaffiliated customers	$	101,136	$	86,099	$	287,627	$	255,911

Schedule of Long-Lived Assets, Based on Geographical Location, Excluding Deferred Tax Assets and Intangible Assets

Long-lived assets based on geographical location, excluding deferred tax assets and intangible assets, were as follows:


	At March 31,		At June 30,
	2018		2017
	(in thousands)
Long-lived assets:
North America	$	37,872	$	35,569
United Kingdom		5,738		5,188
Continental Europe		1,297		1,208
Asia-Pacific and Middle East		2,321		1,901

Total long-lived assets	$	47,228	$	43,866