Industry Segments

3 Months Ended

Jul. 31, 2014

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) 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, 2014 and 2013:

	Three Months Ended July 31,
	2014			2013
Revenues:
Enterprise Resource Planning	$	2,658		$	2,752
Collaborative Supply Chain Management		16,262			14,201
IT Consulting		5,937			6,365
	$	24,857		$	23,318
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,469	)	$	(1,497	)
Collaborative Supply Chain Management		3,017			3,322
IT Consulting		615			558
	$	2,163		$	2,383
Intersegment eliminations:
Enterprise Resource Planning	$	(530	)	$	(480	)
Collaborative Supply Chain Management		500			450
IT Consulting		30			30
	$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(1,999	)	$	(1,977	)
Collaborative Supply Chain Management		3,517			3,772
IT Consulting		645			588
	$	2,163		$	2,383
Capital expenditures:
Enterprise Resource Planning	$	38		$	—
Collaborative Supply Chain Management		20			29
IT Consulting		—			5
	$	58		$	34
Capitalized Software:
Enterprise Resource Planning	$	—		$	—
Collaborative Supply Chain Management		178			717
IT Consulting		—			—
	$	178		$	717
Depreciation and amortization:
Enterprise Resource Planning	$	230		$	221
Collaborative Supply Chain Management		1,149			805
IT Consulting		3			3
	$	1,382		$	1,029
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(1,173	)	$	(1,427	)
Collaborative Supply Chain Management		3,027			3,297
IT Consulting		615			557
	$	2,469		$	2,427

Major Customer

No one customer accounted for more than 10% of total revenues for the three months ended July 31, 2014. 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. Revenues from our major customer for the periods reported are primarily attributable to our IT consulting segment.