Industry Segments

6 Months Ended

Oct. 31, 2016

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, Demand Management, Inc. (“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.

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

	Three Months Ended October 31,						Six Months Ended October 31,
	2016			2015			2016			2015
Revenues:
Enterprise Resource Planning	$	2,757		$	3,059		$	5,765		$	6,584
Collaborative Supply Chain Management		18,125			19,267			37,536			37,840
IT Consulting		5,264			6,744			10,278			13,504
	$	26,146		$	29,070		$	53,579		$	57,928
Operating income (loss) before intersegment eliminations:
Enterprise Resource Planning	$	(1,614	)	$	(1,383	)	$	(3,029	)	$	(2,345	)
Collaborative Supply Chain Management		2,164			4,198			5,016			8,391
IT Consulting		158			513			368			1,102
	$	708		$	3,328		$	2,355		$	7,148
Intersegment eliminations:
Enterprise Resource Planning	$	(880	)	$	(706	)	$	(1,759	)	$	(1,435	)
Collaborative Supply Chain Management		897			675			1,792			1,375
IT Consulting		(17	)		31			(33	)		60
	$	—		$	—		$	—		$	—
Operating income (loss) after intersegment eliminations:
Enterprise Resource Planning	$	(2,495	)	$	(2,089	)	$	(4,788	)	$	(3,780	)
Collaborative Supply Chain Management		3,061			4,873			6,808			9,766
IT Consulting		142			544			335			1,162
	$	708		$	3,328		$	2,355		$	7,148
Capital expenditures:
Enterprise Resource Planning	$	121		$	136		$	166		$	144
Collaborative Supply Chain Management		65			40			163			97
IT Consulting		—			—			—			—
	$	186		$	176		$	329		$	241
Capitalized software:
Enterprise Resource Planning*	$	—		$	—		$	—		$	—
Collaborative Supply Chain Management		969			1,173			1,606			1,990
IT Consulting		—			—			—			—
	$	969		$	1,173		$	1,606		$	1,990
Depreciation and amortization:
Enterprise Resource Planning	$	183		$	149		$	326		$	299
Collaborative Supply Chain Management		1,453			1,256			2,713			2,514
IT Consulting		2			2			4			5
	$	1,638		$	1,407		$	3,043		$	2,818
Earnings (loss) before income taxes:
Enterprise Resource Planning*	$	(1,743	)	$	(1,208	)	$	(2,471	)	$	(1,786	)
Collaborative Supply Chain Management		2,126			4,156			4,951			8,268
IT Consulting		158			513			368			1,102
	$	541		$	3,461		$	2,848		$	7,584

* includes certain unallocated expenses.

Major Customer

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