Industry Segments

9 Months Ended

Jan. 31, 2015

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 nine months ended January 31, 2015 and 2014:

	Three Months Ended January 31,						Nine Months Ended January 31,
	2015			2014			2015			2014
Revenues:
Enterprise Resource Planning	$	2,997		$	2,630		$	8,607		$	8,678
Supply Chain Management		16,302			15,908			48,033			47,043
IT Consulting		6,540			5,889			18,633			18,955
	$	25,839		$	24,427		$	75,273		$	74,676
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,192	)	$	(1,522	)	$	(3,792	)	$	(3,682	)
Supply Chain Management		3,064			4,716			8,076			13,352
IT Consulting		503			345			1,633			1,644
	$	2,375		$	3,539		$	5,917		$	11,314
Intersegment eliminations:
Enterprise Resource Planning	$	(520	)	$	(487	)	$	(1,605	)	$	(1,380	)
Supply Chain Management		491			463			1,527			1,307
IT Consulting		29			24			78			73
	$	—		$	—		$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(1,712	)	$	(2,009	)	$	(5,397	)	$	(5,062	)
Supply Chain Management		3,555			5,179			9,603			14,659
IT Consulting		532			369			1,711			1,717
	$	2,375		$	3,539		$	5,917		$	11,314
Capital expenditures:
Enterprise Resource Planning	$	703		$	24		$	769		$	117
Supply Chain Management		37			26			203			78
IT Consulting		—			—			—			10
	$	740		$	50		$	972		$	205
Capitalized software:
Enterprise Resource Planning	$	—		$	—		$	—		$	—
Supply Chain Management		879			761			1,725			2,402
IT Consulting		—			—			—			—
	$	879		$	761		$	1,725		$	2,402
Depreciation and amortization:
Enterprise Resource Planning	$	241		$	222		$	698		$	663
Supply Chain Management		1,229			210			3,605			1,225
IT Consulting		2			3			8			9
	$	1,472		$	435		$	4,311		$	1,897
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(1,032	)	$	(1,224	)	$	(2,695	)	$	(2,961	)
Supply Chain Management		2,824			4,616			7,694			13,293
IT Consulting		503			345			1,633			1,641
	$	2,295		$	3,737		$	6,632		$	11,973

Major Customer

For the three and nine months ended January 31, 2015, there were no major customers that accounted for more than 10% of total revenues. No one customer accounted for more than 10% of total revenues for the three and nine months ended January 31, 2014.