Industry Segments

3 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

Industry Segments

Industry Segments

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 Chief Executive Officer and President and our Chief Financial Officer. 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, with certain corporate and other common expenses 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 (“IT”) Consulting and (3) Other.

Our primary operating units or brands under our SCM segment include Logility, Inc., New Generation Computing, Inc. ("NGC"), and Demand Management, Inc. ("DMI"). Logility and New Generation Computing are each a wholly-owned subsidiary of the Company, and Demand Management, Inc. is a wholly-owned subsidiary of Logility, Inc. Each operating unit focuses on a segment of the marketplace where their expertise lies.

All of our revenues are derived from external customers. We do not have any intersegment 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, 2020 and 2019 (in thousands):

	Three Months Ended July 31,
	2020		2019
Revenues:
Supply Chain Management	$	21,736	$	22,347
IT Consulting	5,026		4,378
Other	516		658
	$	27,278	$	27,383
Operating income (loss):
Supply Chain Management	$	4,105	$	3,851
IT Consulting	106		178
Other	(3,326)		(3,232)
	$	885	$	797
Capital expenditures:
Supply Chain Management	$	39	$	31
IT Consulting	—		—
Other	79		79
	$	118	$	110
Capitalized software:
Supply Chain Management	$	245	$	1,285
IT Consulting	—		—
Other	—		—
	$	245	$	1,285
Depreciation and amortization:
Supply Chain Management	$	1,586	$	2,151
IT Consulting	1		2
Other	93		92
	$	1,680	$	2,245
Earnings (loss) before income taxes:
Supply Chain Management	$	4,376	$	4,036
IT Consulting	104		178
Other	(2,263)		(2,892)
	$	2,217	$	1,322