SEGMENT INFORMATION:

6 Months Ended

Sep. 30, 2013

SEGMENT INFORMATION:

SEGMENT INFORMATION:

8.             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.  During the quarter ended June 30, 2013, the Company realigned its business segments to better reflect the way management assesses the business.  The e-mail fulfillment business was moved from the Other services segment to the Marketing and data services segment.  The prior-year segment information has been restated to conform to the new segment presentation.  The Marketing and data services segment now includes the Company’s global lines of business for Customer Data Integration (CDI), Consumer Insight Solutions, the Audience Operating System, Marketing Management Services, E-mail Fulfillment Services, and Consulting and Agency Services.  The IT Infrastructure management segment develops and delivers IT outsourcing and transformational solutions.  The Other services segment now consists solely of the UK fulfillment business.

Company 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, as well as certain business separation expenses.  Because segment operating income excludes certain impairments and gains, losses and other items and business separation expenses 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 September 30						For the six months ended September 30
	2013			2012			2013			2012
Revenue:
Marketing and data services	$	200,952		$	198,602		$	388,745		$	391,084
IT Infrastructure management	66,825			70,061			136,210			140,351
Other services	8,494			8,804			17,509			17,691
Total revenue	$	276,271		$	277,467		$	542,464		$	549,126
Income (loss) from operations:
Marketing and data services	$	16,014		$	22,262		$	28,671		$	40,965
IT Infrastructure management	11,967			8,520			22,728			17,351
Other services	223			(542		)	877			(2,492		)
Corporate	(8,573		)	(32		)	(8,573		)	(192		)
Income from operations	$	19,631		$	30,208		$	43,703		$	55,632