Industry Segments

9 Months Ended

Jan. 31, 2023

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 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. The three operating segments are: (1) Supply Chain Management (“SCM”), (2) Information Technology Consulting (“IT Consulting”) and (3) Other.

The SCM segment leverages a single platform spanning seven supply chain process areas, including product, demand, inventory, supply, deploy, integrated business planning and supply chain data management. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. The Other segment consists of (i) American Software ERP, which provides purchasing and materials management, client order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) unallocated corporate overhead expenses.

All of our revenue is derived from external clients. 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.

In the following table, we have broken down the intersegment transactions applicable to the three and nine months ended January 31, 2023 and 2022 (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2023		2022		2023		2022
Revenue:
Supply Chain Management	$	26,952	$	26,061	$	79,886	$	75,692
IT Consulting	3,584		5,842		12,258		15,544
Other	475		519		1,601		1,668
	$	31,011	$	32,422	$	93,745	$	92,904
Operating income\(loss):
Supply Chain Management	$	7,763	$	7,458	$	22,587	$	19,531
IT Consulting	211		506		643		1,005
Other	(5,018)		(4,725)		(14,950)		(12,837)
	$	2,956	$	3,239	$	8,280	$	7,699
Capital expenditures:
Supply Chain Management	$	14	$	57	$	1,604	$	672
IT Consulting	—		—		—		—
Other	935		165		2,051		165
	$	949	$	222	$	3,655	$	837
Depreciation and amortization:
Supply Chain Management	$	675	$	907	$	2,042	$	2,889
IT Consulting	—		—		—		—
Other	113		93		347		281
	$	788	$	1,000	$	2,389	$	3,170
Earnings\(loss) before income taxes:
Supply Chain Management	$	8,094	$	7,458	$	22,695	$	19,377
IT Consulting	211		506		643		1,005
Other	(4,015)		(4,633)		(13,750)		(11,224)
	$	4,290	$	3,331	$	9,588	$	9,158