Industry Segments

6 Months Ended

Oct. 31, 2013

Industry Segments

J. 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 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 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, 2013 and 2012:

	Three Months Ended October 31,						Six Months Ended October 31,
	2013			2012			2013			2012
Revenues:
Enterprise Resource Planning	$	3,296		$	3,470		$	6,048		$	6,908
Collaborative Supply Chain Management		16,934			16,356			31,135			31,805
IT Consulting		6,701			6,437			13,066			13,464
	$	26,931		$	26,263		$	50,249		$	52,177
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(666	)	$	(947	)	$	(2,160	)	$	(2,180	)
Collaborative Supply Chain Management		5,315			4,708			8,636			9,131
IT Consulting		743			475			1,299			1,006
	$	5,392		$	4,236		$	7,775		$	7,957
Intersegment eliminations:
Enterprise Resource Planning	$	(413	)	$	(600	)	$	(893	)	$	(996	)
Collaborative Supply Chain Management		394			570			844			943
IT Consulting		19			30			49			53
	$	—		$	—		$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(1,079	)	$	(1,547	)	$	(3,053	)	$	(3,176	)
Collaborative Supply Chain Management		5,709			5,278			9,480			10,074
IT Consulting		762			505			1,348			1,059
	$	5,392		$	4,236		$	7,775		$	7,957
Capital expenditures:
Enterprise Resource Planning	$	93		$	40		$	93		$	317
Collaborative Supply Chain Management		23			141			52			177
IT Consulting		5			—			10			27
	$	121		$	181		$	155		$	521
Capitalized Software:
Enterprise Resource Planning	$	—		$	—		$	—		$	—
Collaborative Supply Chain Management		924			948			1,641			1,811
IT Consulting		—			—			—			—
	$	924		$	948		$	1,641		$	1,811
Depreciation and amortization:
Enterprise Resource Planning	$	220		$	232		$	441		$	469
Collaborative Supply Chain Management		210			808			1,015			1,612
IT Consulting		3			2			6			4
	$	433		$	1,042		$	1,462		$	2,085
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(310	)	$	(706	)	$	(1,737	)	$	(1,614	)
Collaborative Supply Chain Management		5,380			4,776			8,677			9,147
IT Consulting		739			475			1,296			1,006
	$	5,809		$	4,545		$	8,236		$	8,539

Major Customer

For the three months ended October 31, 2013, there were no major customers that accounted for more than 10% of total revenues. For the six months ended October 31, 2013, we had one major customer, The Home Depot, which accounted for approximately 10.0%, or $5.0 million of total revenues. For the three and six months ended October 31, 2012, this major customer accounted for approximately 10.6%, or $2.8 million, and 12.2%, or $6.4 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 as of October 31, 2013, and $1.6 million as of April 30, 2013.