SEGMENT INFORMATION:

9 Months Ended

Dec. 31, 2012

SEGMENT INFORMATION:

SEGMENT INFORMATION:

9.             SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.  We regularly review our segments and the approach used by management to evaluate performance and allocate resources.  The Company’s business segments consist of Marketing and data services, IT Infrastructure management, and Other services.  The Marketing and data services segment includes the Company’s global lines of business for Customer Data Integration (CDI), Consumer Insight Solutions, Marketing Management Services, and Consulting and Agency Services.  The IT Infrastructure management segment develops and delivers IT outsourcing and transformational solutions.  The Other services segment includes the e-mail fulfillment business, the US risk business, and the UK fulfillment business.

Our management uses the revenues and earnings of the three operating segments, among other factors, for performance evaluation and resource allocation.  The Company evaluates performance of the segments based on segment operating income.  The Company’s calculation of segment operating income does not include inter-company transactions and allocates all corporate expenses, excluding those reported as impairments or gains, losses and other items.  Because segment operating income excludes certain impairments and gains, losses and other items this measure is considered a non-GAAP financial measure, which is not a financial measure calculated in accordance with generally accepted accounting principles.  Management believes segment operating income is a helpful measure in evaluating performance of the business segments.  While management considers segment operating income to be a helpful measure of comparative operating performance, this measure should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP presented elsewhere in the financial statements.  In addition, the Company’s calculation of segment operating income may be different from measures used by other companies and therefore comparability may be affected.

The following tables present information by business segment (dollars in thousands):

	For the quarter ended December 31						For the nine months ended December 31
	2012			2011			2012			2011
Revenue:
Marketing and data services	$	190,138		$	187,461		$	570,286		$	568,314
IT Infrastructure management	69,916			77,173			210,267			223,935
Other services	13,048			16,259			41,675			51,120
Total revenue	$	273,102		$	280,893		$	822,228		$	843,369
Income (loss) from operations:
Marketing and data services	$	17,971		$	21,388		$	59,277		$	65,726
IT Infrastructure management	9,622			9,795			26,973			19,133
Other services	(821		)	(533		)	(3,654		)	(3,745		)
Corporate	126			(15,132		)	(66		)	(17,841		)
Income from operations	$	26,898		$	15,518		$	82,530		$	63,273