Industry Segments

3 Months Ended

Jul. 31, 2013

Industry Segments

H. 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) Enterprise Resource Planning (“ERP”), (2) Supply Chain Management (“SCM”), and (3) Information Technology (“IT”) Consulting.

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 SCM segment, which consists of Logility, a wholly-owned subsidiary, as well as its subsidiary, DMI, provides collaborative supply chain solutions to streamline and optimize the forecasting, production, distribution and management of products between trading partners. 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, 2013 and 2012:

	Three Months Ended July 31,
	2013			2012
Revenues:
Enterprise Resource Planning	$	2,752		$	3,438
Collaborative Supply Chain Management		14,201			15,449
IT Consulting		6,365			7,027
	$	23,318		$	25,914
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,497	)	$	(1,233	)
Collaborative Supply Chain Management		3,322			4,423
IT Consulting		558			531
	$	2,383		$	3,721
Intersegment eliminations:
Enterprise Resource Planning	$	(480	)	$	(396	)
Collaborative Supply Chain Management		450			373
IT Consulting		30			23
	$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(1,977	)	$	(1,629	)
Collaborative Supply Chain Management		3,772			4,796
IT Consulting		588			554
	$	2,383		$	3,721
Capital expenditures:
Enterprise Resource Planning	$	—		$	277
Collaborative Supply Chain Management		29			36
IT Consulting		5			27
	$	34		$	340
Capitalized Software:
Enterprise Resource Planning	$	—		$	—
Collaborative Supply Chain Management		717			863
IT Consulting		—			—
	$	717		$	863
Depreciation and amortization:
Enterprise Resource Planning	$	221		$	237
Collaborative Supply Chain Management		805			804
IT Consulting		3			2
	$	1,029		$	1,043
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(1,427	)	$	(908	)
Collaborative Supply Chain Management		3,297			4,371
IT Consulting		557			531
	$	2,427		$	3,994

Major Customer

For the three months ended July 31, 2013, we had one major customer, The Home Depot, which accounted for approximately 10.8%, or $2.5 million, of total revenues, respectively. For the three months ended July 31, 2012, this major customer accounted for approximately 13.9%, or $3.6 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 $1.1 million and $1.6 million as of July 31, 2013 and April 30, 2013, respectively.