Industry Segments And Major Customers

3 Months Ended

Jul. 31, 2011

Industry Segments And Major Customers

Industry Segments And Major Customers

I. Industry Segments and Major Customers

We provide our software solutions through three major business segments, which are further broken down into a total of four major product and service groups. The three business segments are (1) Supply Chain Management (SCM), (2) Enterprise Resource Planning (ERP), and (3) Information Technology (IT) Consulting.

The SCM segment consists of Logility, a wholly-owned subsidiary, as well as its subsidiary, DMI, which provide collaborative supply chain solutions to streamline and optimize the forecasting, production, distribution and management of products between trading partners. The ERP segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce, Flow Manufacturing and traditional manufacturing solutions, and (ii) New Generation Computing (NGC), which provides industry-specific business software to both retailers and manufacturers in the apparel, sewn products and furniture industries. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. We also provide support for our software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, and maintenance.

Our chief operating decision maker is the President and Chief Executive Officer (CEO). While the CEO is apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CEO evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated expenses.

In the following table, we have broken down the intersegment transactions applicable to the three months ended July 31, 2011 and 2010:

	Three Months Ended July 31,
	2011			2010
Revenues:
Enterprise Resource Planning	$	2,518		$	3,981
Collaborative Supply Chain Management		15,291			9,743
IT Consulting		5,900			5,370
	$	23,709		$	19,094
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,925	)	$	(588	)
Collaborative Supply Chain Management		5,095			2,365
IT Consulting		424			239
	$	3,594		$	2,016
Intersegment eliminations:
Enterprise Resource Planning	$	(367	)	$	(386	)
Collaborative Supply Chain Management		376			386
IT Consulting		(9	)		—
		—			—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(2,292	)	$	(974	)
Collaborative Supply Chain Management		5,471			2,751
IT Consulting		415			239
	$	3,594		$	2,016
Capital expenditures:
Enterprise Resource Planning	$	56		$	9
Collaborative Supply Chain Management		73			253
IT Consulting		—			—
	$	129		$	262
Capitalized Software:
Enterprise Resource Planning	$	—		$	—
Collaborative Supply Chain Management		604			631
IT Consulting		—			—
	$	604		$	631
Depreciation and amortization:
Enterprise Resource Planning	$	283		$	296
Collaborative Supply Chain Management		810			263
IT Consulting		1			—
	$	1,094		$	559

Major Customers

For the three months ended July 31, 2011, we had one major customer, The Home Depot, which accounted for approximately 14.2%, or $3.4 million, of total revenues. For the three months ended July 31, 2010, this major customer accounted for approximately 14.8%, or $2.8 million, of total revenues. Revenues from our major customer for the periods reported are primarily attributable to our IT consulting segment. The related accounts receivable balance for this customer was approximately $4.6 million and $1.5 million as of July 31, 2011 and 2010, respectively.