Industry Segments

6 Months Ended

Oct. 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) 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, 2014 and 2013:

	Three Months Ended October 31,						Six Months Ended October 31,
	2014			2013			2014			2013
Revenues:
Enterprise Resource Planning	$	2,952		$	3,296		$	5,610		$	6,048
Collaborative Supply Chain Management		15,469			16,934			31,731			31,135
IT Consulting		6,156			6,701			12,093			13,066
	$	24,577		$	26,931		$	49,434		$	50,249
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,131	)	$	(666	)	$	(2,600	)	$	(2,160	)
Collaborative Supply Chain Management		1,995			5,315			5,012			8,636
IT Consulting		515			743			1,130			1,299
	$	1,379		$	5,392		$	3,542		$	7,775
Intersegment eliminations:
Enterprise Resource Planning	$	(555	)	$	(413	)	$	(1,085	)	$	(893	)
Collaborative Supply Chain Management		536			394			1,036			844
IT Consulting		19			19			49			49
	$	—		$	—		$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(1,686	)	$	(1,079	)	$	(3,685	)	$	(3,053	)
Collaborative Supply Chain Management		2,531			5,709			6,048			9,480
IT Consulting		534			762			1,179			1,348
	$	1,379		$	5,392		$	3,542		$	7,775
Capital expenditures:
Enterprise Resource Planning	$	28		$	93		$	66		$	93
Collaborative Supply Chain Management		146			23			166			52
IT Consulting		—			5			—			10
	$	174		$	121		$	232		$	155
Capitalized software:
Enterprise Resource Planning	$	—		$	—		$	—		$	—
Collaborative Supply Chain Management		668			924			846			1,641
IT Consulting		—			—			—			—
	$	668		$	924		$	846		$	1,641
Depreciation and amortization:
Enterprise Resource Planning	$	227		$	220		$	457		$	441
Collaborative Supply Chain Management		1,227			210			2,376			1,015
IT Consulting		3			3			6			6
	$	1,457		$	433		$	2,839		$	1,462
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(490	)	$	(310	)	$	(1,663	)	$	(1,737	)
Collaborative Supply Chain Management		1,843			5,380			4,870			8,677
IT Consulting		515			739			1,130			1,296
	$	1,868		$	5,809		$	4,337		$	8,236

Major Customer

For the three and six months ended October 31, 2014, there were no major customers that accounted for more than 10% of total revenues. 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. Revenues from our major customer for the periods reported are primarily attributable to our IT consulting segment.