Industry Segments

3 Months Ended

Jul. 31, 2016

Industry Segments

I. 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, inventory, production, supply, allocation, 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, maintenance and support services.

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, which are included in the ERP segment.

All of our revenues are derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment.

In the following table, we have broken down the intersegment transactions applicable to the three months ended July 31, 2016 and 2015:

	Three Months Ended July 31,
	2016			2015
Revenues:
Enterprise Resource Planning	$	3,008		$	3,525
Collaborative Supply Chain Management		19,411			18,573
IT Consulting		5,014			6,760
	$	27,433		$	28,858
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,416	)	$	(962	)
Collaborative Supply Chain Management		2,852			4,193
IT Consulting		210			589
	$	1,646		$	3,820
Intersegment eliminations:
Enterprise Resource Planning	$	(906	)	$	(729	)
Collaborative Supply Chain Management		896			700
IT Consulting		10			29
	$	—		$	—

	Three Months Ended July 31,
	2016			2015
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(2,322	)	$	(1,691	)
Collaborative Supply Chain Management		3,748			4,893
IT Consulting		220			618
	$	1,646		$	3,820

	Three Months Ended July 31,
	2016			2015
Capital expenditures:
Enterprise Resource Planning	$	42		$	8
Collaborative Supply Chain Management		102			57
IT Consulting		—			—
	$	144		$	65
Capitalized Software:
Enterprise Resource Planning	$	—		$	—
Collaborative Supply Chain Management		636			817
IT Consulting		—			—
	$	636		$	817
Depreciation and amortization:
Enterprise Resource Planning	$	144		$	150
Collaborative Supply Chain Management		1,261			1,258
IT Consulting		2			3
	$	1,407		$	1,411
Earnings (loss) before income taxes:
Enterprise Resource Planning	$	(729	)	$	(578	)
Collaborative Supply Chain Management		2,825			4,112
IT Consulting		210			589
	$	2,306		$	4,123

Major Customer

No one customer accounted for more than 10% of total revenues for the three months ended July 31, 2016 and 2015.