Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segments

Business Segments

We conduct our operations by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. In accordance with FASB ASC 280, Segment Reporting, we report the two operating divisions as two reportable segments; Customer Interaction and Trillium Software. Our reportable segments are described below. Corporate expense consists primarily of pension, workers’ compensation expense, and litigation items from businesses we no longer own.

Customer Interaction

Our Customer Interaction services offer a wide variety of integrated, multi-channel, data-driven solutions for top brands around the globe. We help our clients gain insight into their customers’ behaviors from their data and use that insight to create innovative multi-channel marketing programs to deliver a return on marketing investment. We believe our clients’ success is determined not only by how good their tools are, but how well we help them use the tools to gain insight and analyze their consumers. This results in a strong and enduring relationship between our clients and their customers which is key to being leaders in Customer Interaction. We offer a full complement of capabilities and resources to provide a broad range of marketing services, in media from direct mail to email, including:

• agency and digital services;

• database marketing solutions and business-to-business lead generation;

• direct mail; and

• contact centers.

Customer Interaction’s largest cost components are labor, outsourced costs and mail supply chain costs.

Trillium Software

Trillium Software is a leading global enterprise data quality solutions provider. Our data quality specialists help organizations achieve increased business from their data management initiatives and existing business-critical processes by providing enterprise data profiling and data cleansing software and services. We offer industry-specific business solutions that help solve data problems experienced by financial services, banking, retail, healthcare, manufacturing, and risk professionals. Our full complement of technologies and services includes global data profiling, data cleansing, enrichment, and data linking for e-business, Big Data customer relationship management, data governance, enterprise resource planning, supply chain management, data warehouse, and other enterprise applications. Revenues from the Trillium Software segment are comprised primarily of perpetual software licenses, annual maintenance and professional services.

Trillium Software’s largest cost component is software development, which is comprised primarily of labor.

Information about the operations of our two business segments is as follows:

	Three Months Ended March 31,
In thousands	2016			2015
Operating revenues
Customer Interaction	$	99,563		$	109,315
Trillium Software	11,160			11,858
Total operating revenues	$	110,723		$	121,173
Operating income (loss)
Customer Interaction	$	(7,909	)	$	1,527
Trillium Software	2,242			3,013
Corporate	(702		)	(1,525		)
Total operating income (loss)	$	(6,369	)	$	3,015
Operating income (loss)	$	(6,369	)	$	3,015
Interest expense, net	1,381			609
Other, Net	(172		)	(407		)
Total income (loss) from operations before income taxes	$	(7,578	)	$	2,813