Industry Segments

9 Months Ended

Jan. 31, 2021

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. The Other segment consists of software and services provided to our legacy enterprise resource planning (“ERP”) customers, as well as corporate overhead and other common expenses.

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 and nine months ended January 31, 2021 and 2020 (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2021		2020		2021		2020
Revenues:
Supply Chain Management	$	22,646	$	25,578	$	66,679	$	71,411
IT Consulting	4,543		4,475		14,602		13,011
Other	494		547		1,561		1,771
	$	27,683	$	30,600	$	82,842	$	86,193
Operating income (loss):
Supply Chain Management	$	4,713	$	6,693	$	12,800	$	14,904
IT Consulting	83		43		292		210
Other*	(3,861)		(3,917)		(10,641)		(10,655)
	$	935	$	2,819	$	2,451	$	4,459
Capital expenditures:
Supply Chain Management	$	152	$	43	$	236	$	117
IT Consulting	—		—		—		—
Other*	146		58		225		222
	$	298	$	101	$	461	$	339
Capitalized software:
Supply Chain Management	$	233	$	807	$	604	$	2,697
IT Consulting	—		—		—		—
Other	—		—		—		—
	$	233	$	807	$	604	$	2,697
Depreciation and amortization:
Supply Chain Management	$	1,149	$	1,785	$	4,150	$	6,026
IT Consulting	—		2		2		4
Other*	98		95		289		280
	$	1,247	$	1,882	$	4,441	$	6,310
Earnings (loss) before income taxes:
Supply Chain Management	$	4,803	$	6,743	$	13,023	$	15,259
IT Consulting	83		43		290		209
Other*	(2,519)		(2,989)		(8,140)		(8,794)
	$	2,367	$	3,797	$	5,173	$	6,674