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Segment information
 12 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment information Segment information
The Company has 6 reportable segments, which are based on the geographical location of the 5 Regional Sales Offices (“RSOs”) and also includes the Central Services Organization (“CSO”). CSO is the central services organization that wholesales products and services to RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of hardware and software platforms and provides common marketing, product management, technical and distribution support to each of the other reportable segments. CSO is a reportable segment because it produces discrete financial information which is reviewed by the chief operating decision maker (“CODM”) and has the ability to generate external revenues.

The CODM has been identified as the Chief Executive Officer who makes strategic decisions for the Company. The performance of the reportable segments has been measured and evaluated by the CODM using Segment Adjusted EBITDA, which is a measure that uses income before income tax expense excluding net interest income/expense, net foreign exchange gains/losses, net loss/profit on sale of property, plant and equipment, depreciation, amortization, operating lease costs, stock–based compensation costs, restructuring costs, legal costs associated with patent infringement, gains or losses on the disposal or impairments of long-lived assets and corporate and consolidation entries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA.
In determining Segment Adjusted EBITDA, the margin generated by CSO, net of any unrealized intercompany profit, is allocated to the geographic region where the external revenue is recorded by our RSOs. The costs remaining in CSO relate mainly to research and development of hardware and software platforms, common marketing, product management and technical and distribution support to each of the RSOs.

Each RSO’s results therefore reflects the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations.

The segment information provided to the CODM is as follows (in thousands):

As of March 31, 2020
Subscription
revenue (1)
Hardware
and other
revenue (2)
Total
revenue		Segment Adjusted
EBITDA
Regional Sales Offices
Africa$70,886 $5,870 $76,756 $33,103 
Europe11,682 3,345 15,027 5,603 
Americas22,322 2,207 24,529 10,370 
Middle East and Australasia17,389 5,741 23,130 11,031 
Brazil5,181 614 5,795 2,366 
Total Regional Sales Offices127,460 17,777 145,237 62,473 
Central Services Organization110 303 413 (9,175)
Total Segment Results$127,570 $18,080 $145,650 $53,298 

(1) Subscription revenue is recognized over time.
(2) Hardware and other revenue is recognized at a point in time.

As of March 31, 2021
Subscription
revenue (1)
Hardware
and other
revenue (2)
Total revenueSegment Adjusted EBITDA
Regional Sales Offices
Africa$62,453 $5,495 $67,948 $31,781 
Europe12,138 2,441 14,579 6,260 
Americas18,211 770 18,981 7,077 
Middle East and Australasia16,558 4,679 21,237 9,751 
Brazil3,922 142 4,064 1,495 
Total Regional Sales Offices113,282 13,527 126,809 56,364 
Central Services Organization69 16 85 (7,553)
Total Segment Results$113,351 $13,543 $126,894 $48,811 

(1) Subscription revenue is recognized over time.
(2) Hardware and other revenue is recognized at a point in time.
As of March 31, 2022
Subscription
revenue (1)
Hardware
and other
revenue (2)
Total revenueSegment Adjusted EBITDA
Regional Sales Offices
Africa$74,778 $8,398 $83,176 $36,467 
Europe13,509 3,745 17,254 6,337 
Americas14,036 1,538 15,574 842 
Middle East and Australasia16,950 5,604 22,554 10,034 
Brazil4,253 401 4,654 1,260 
Total Regional Sales Offices123,526 19,686 143,212 54,940 
Central Services Organization47 35 82 (10,168)
Total Segment Results$123,573 $19,721 $143,294 $44,772 

(1) Subscription revenue is recognized over time.
(2) Hardware and other revenue is recognized at a point in time.

The revenue from external parties reported to the Company’s CODM is recognized and measured in a manner consistent with that in the consolidated statements of income. Revenue generated by the South African-based operating segments of the Company (i.e. Central Services Organization and Africa, excluding East Africa) to its local and foreign-based customers for fiscal years 2020, 2021 and 2022, amounted to $76.0 million, $67.1 million and $82.3 million, respectively. Revenue generated by the foreign-based segments (i.e. Europe, Americas, East Africa, Middle East, Brazil and Australasia) to its local and foreign-based customers for fiscal years 2020, 2021 and 2022, amounted to $69.7 million, $59.8 million and $61.0 million.

A reconciliation of the segment results to income before income tax expense for the year is disclosed below (in thousands).

As of March 31,
202020212022
Segment Adjusted EBITDA$53,298 $48,811 $44,772 
Corporate and consolidation entries(8,366)(8,879)(10,243)
Loss contingency (1)
(233)— — 
Operating lease costs (2)
(1,610)(1,652)(1,611)
Product development costs (3)
(1,363)(1,112)(1,353)
Depreciation and amortization(19,972)(16,559)(14,951)
Impairment of long-lived assets(6)(8)(47)
Stock-based compensation costs(660)(1,273)(1,325)
Restructuring costs (4)
1 (1,055)(164)
Net profit/(loss) on sale of property, plant and equipment270 (13)36 
Net foreign exchange losses(610)(959)(648)
Net interest income/(expense)67 (72)(510)
Legal costs associated with patent infringement
— — (591)
Income before income tax expense$20,816 $17,229 $13,365 

(1) For segment reporting purposes, a loss contingency (51% probability), had been raised prior to fiscal year 2019. As of March 31, 2020, the loss contingency was no longer needed because an outflow was considered remote. In order to reconcile Segment Adjusted EBITDA to income before income tax expense, the increases/decreases to the loss contingency, recognized for segment reporting purposes, needed to be added/deducted.
(2) For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment reporting purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to income before income tax expense, the total lease expense in respect of operating leases needs to be deducted.

(3) For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software, are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to income before income tax expense, product development costs capitalized for segment reporting purposes need to be deducted.

(4) During fiscal year 2021, the Company incurred $1.1 million of restructuring costs which comprise of employee termination benefits, as a result of measures to minimize the adverse economic and business effect of the COVID-19 pandemic and to re-align resources with the Company’s current business outlook and cost structure. $0.7 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to the CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. As of March 31, 2022, all of the restructuring costs had been paid. Restructuring costs are included in Administration and other expenses in the consolidated statements of income.

Segment assets are not disclosed because such information is not reviewed by the CODM. The following table depicts the geographical location of the Company’s long-lived assets (in thousands) other than financial instruments, deferred commissions and deferred tax assets:

As of March 31,
20212022
South Africa$63,832 $75,621 
Europe10,366 10,161 
America5,178 5,192 
Middle East and Australia5,474 5,099 
Brazil854 1,095 
Total$85,704 $97,168 

These assets are allocated based on the physical location of the asset.

No single customer accounted for 10% or more of the Company’s total revenue in fiscal years 2020, 2021 and 2022. No single customer accounted for 10% or more of the Company’s accounts receivable as of fiscal years ended 2021 and 2022.