Industry Segments

6 Months Ended

Oct. 31, 2011

Industry Segments [Abstract]

Industry Segments

I. Industry Segments

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 provides 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 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 and six months ended October 31, 2011 and 2010:

	Three Months Ended October 31,						Six Months Ended October 31,
	2011			2010			2011			2010
Revenues:
Enterprise Resource Planning	$	3,962		$	3,257		$	6,480		$	7,238
Collaborative Supply Chain Management		15,390			11,808			30,681			21,551
IT Consulting		6,246			5,888			12,146			11,258
	$	25,598		$	20,953		$	49,307		$	40,047
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(284	)	$	(1,187	)	$	(2,209	)	$	(1,775	)
Collaborative Supply Chain Management		4,524			2,616			9,619			4,981
IT Consulting		476			346			900			585
	$	4,716		$	1,775		$	8,310		$	3,791
Intersegment eliminations:
Enterprise Resource Planning	$	(374	)	$	(444	)	$	(741	)	$	(829	)
Collaborative Supply Chain Management		374			444			750			829
IT Consulting		—			—			(9	)		—
		—			—			—			—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(658	)	$	(1,631	)	$	(2,950	)	$	(2,604	)
Collaborative Supply Chain Management		4,898			3,060			10,369			5,810
IT Consulting		476			346			891			585
	$	4,716		$	1,775		$	8,310		$	3,791
Capital expenditures:
Enterprise Resource Planning	$	37		$	15		$	93		$	24
Collaborative Supply Chain Management		51			43			124			296
IT Consulting		5			—			5			—
	$	93		$	58		$	222		$	320
Capitalized Software:
Enterprise Resource Planning	$	—		$	—		$	—		$	—
Collaborative Supply Chain Management		661			628			1,265			1,259
IT Consulting		—			—			—			—
	$	661		$	628		$	1,265		$	1,259
Depreciation and amortization:
Enterprise Resource Planning	$	267		$	288		$	550		$	584
Collaborative Supply Chain Management		814			879			1,624			1,142
IT Consulting		1			1			2			1
	$	1,082		$	1,168		$	2,176		$	1,727

Major Customer

For the three and six months ended October 31, 2011, we had one major customer, The Home Depot, which accounted for approximately 13.8%, or $3.5 million, and 14.0%, or $6.9 million, of total revenues, respectively. For the three and six months ended October 31, 2010, this major customer accounted for approximately 17.3%, or $3.6 million, and 16.1%, or $6.5 million, of total revenues, respectively. 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 $2.5 million as of October 31, 2011, and $2.3 million as of April 30, 2011.