Industry Segments

6 Months Ended

Oct. 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 NGC are each a wholly-owned subsidiary of the Company, and DMI 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 October 31, 2020 and 2019 (in thousands):

	Three Months Ended October 31,				Six Months Ended October 31,
	2020		2019		2020		2019
Revenues:
Supply Chain Management	$	22,297	$	23,487	$	44,033	$	45,834
IT Consulting	5,033		4,158		10,059		8,536
Other	551		565		1,067		1,223
	$	27,881	$	28,210	$	55,159	$	55,593
Operating income (loss):
Supply Chain Management	$	3,983	$	4,360	$	8,087	$	8,211
IT Consulting	103		(12)		209		166
Other	(3,455)		(3,505)		(6,780)		(6,737)
	$	631	$	843	$	1,516	$	1,640
Capital expenditures:
Supply Chain Management	$	45	$	44	$	84	$	75
IT Consulting	—		—		—		—
Other	—		84		79		163
	$	45	$	128	$	163	$	238
Capitalized software:
Supply Chain Management	$	126	$	605	$	371	$	1,890
IT Consulting	—		—		—		—
Other	—		—		—		—
	$	126	$	605	$	371	$	1,890
Depreciation and amortization:
Supply Chain Management	$	1,415	$	2,089	$	3,001	$	4,241
IT Consulting	—		1		1		3
Other	99		93		192		184
	$	1,514	$	2,183	$	3,194	$	4,428
Earnings (loss) before income taxes:
Supply Chain Management	$	3,845	$	4,480	$	8,220	$	8,516
IT Consulting	103		(12)		207		166
Other	(3,359)		(2,913)		(5,621)		(5,805)
	$	589	$	1,555	$	2,806	$	2,877