Segment Information

FASB ASC 280, Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of a public entity about which separate financial information is available that is evaluated regularly by the chief operating decision makers (“CODMs”), or decision making group, in deciding how to allocate resources and in assessing performance. Our CODMs are our Principal Executive Officer (“PEO”) and President. While our CODMs are apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CODMs evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated corporate expenses, which are included in the Other segment. Our CODMs review the operating results of our three segments, assess performance and allocate resources in a manner that is consistent with the changing market dynamics that we have experienced. As a result, in the third quarter of fiscal 2018, we updated our operating segments to reflect the fact that we provide our software solutions through three major operating segments, which are further broken down into a total of six major product and service groups. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other.

The SCM segment consists of Logility, which provides supply chain optimization and advance retail planning solutions, as an integrated suite of sales and operations planning, demand optimization, inventory optimization, manufacturing planning and scheduling, supply optimization, retail allocation and merchandise planning and transportation optimization, as well as (i) DMI, which provides collaborative supply chain solutions to streamline and optimize the forecasting, inventory, production, supply, allocation, distribution and management of products between trading partners, (ii) NGC, which provides cloud solutions for supply chain management, PLM, quality control, vendor compliance and enterprise resource planning for both retailers and manufacturers in the apparel, sewn products and furniture industries, and (iii) Halo, which provides advanced analytics and business intelligence solutions for the supply chain market. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm, which provides support for our software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, maintenance and support services. The Other 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) unallocated corporate overhead expenses.

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.

Following is information related to each segment as of and for the years ended April 30, 2019, 2018 and 2017:



	2019			2018			2017
Revenues:
Supply Chain Management	$	86,296		$	91,613		$	84,058
IT Consulting	20,007			18,460			19,633
Other	2,403			2,630			2,595
	$	108,706		$	112,703		$	106,286
Operating income/(loss) before intersegment eliminations:
Supply Chain Management	$	15,967		$	19,580		$	13,103
IT Consulting	964			985			890
Other	(11,655		)	(7,034		)	(6,227		)
	$	5,276		$	13,531		$	7,766
Intersegment eliminations*:
Supply Chain Management	$	—		$	—		$	—
IT Consulting	—			—			—
Other	—			—			—
	$	—		$	—		$	—

Operating income/(loss) after intersegment eliminations:
Supply Chain Management	$	15,967		$	19,580		$	13,103
IT Consulting	964			985			890
Other	(11,655		)	(7,034		)	(6,227		)
	$	5,276		$	13,531		$	7,766
Capital expenditures:
Supply Chain Management	$	375		$	263		$	321
IT Consulting	1			10			2
Other	876			1,155			408
	$	1,252		$	1,428		$	731
Capitalized software:
Supply Chain Management	$	5,961		$	4,804		$	3,724
IT Consulting	—			—			—
Other	—			—			—
	$	5,961		$	4,804		$	3,724
Depreciation and amortization:
Supply Chain Management	$	7,372		$	5,827		$	6,173
IT Consulting	7			7			7
Other	340			196			460
	$	7,719		$	6,030		$	6,640
Interest income:
Supply Chain Management	$	1,408		$	1,043		$	817
IT Consulting	—			—			—
Other	684			532			440
	$	2,092		$	1,575		$	1,257
Earnings/(loss) before income taxes:
Supply Chain Management	$	16,335		$	20,026		$	13,050
IT Consulting	964			985			890
Other	(9,658		)	(5,296		)	7,675
	$	7,641		$	15,715		$	21,615

*Fiscal 2018 and 2017 recast to adjust for corporate overhead and other common expense, which were no longer allocated starting in fiscal 2019.



	April 30, 2019		April 30, 2018
Total Consolidated Assets:
Supply Chain Management	$	112,604	$	112,881
IT Consulting	4,599		5,538
Other	44,107		44,546
	$	161,310	$	162,965

International Revenue and Significant Customer

International revenues approximated $21.4 million or 20%, $21.8 million or 19%, and $18.8 million or 18%, of consolidated revenues for the years ended April 30, 2019, 2018, and 2017, respectively, and were derived primarily from customers in Canada and Europe. International revenue is based on the delivery of software and performance of services.

No single customer accounted for more than 10% of total revenues for the years ended April 30, 2019, April 30, 2018 and April 30, 2017.