SEGMENT INFORMATION:

6 Months Ended

Sep. 30, 2015

SEGMENT INFORMATION:

SEGMENT INFORMATION:

10.SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.

During the first quarter of fiscal 2016, the Company realigned its organizational structure to better reflect its business strategy. On May 20, 2015, the Company entered into a definitive agreement to sell its ITO business to Charlesbank Capital Partners and M/C Partners to more sharply focus on growing our Marketing & Data Services businesses. The sale was completed on July 31, 2015.  As a result of this transaction and the organizational realignment, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed. Thus, beginning in fiscal year 2016, the Company began reporting its financial performance based on the following new segments: Marketing Services and Audience Solutions, and Connectivity. Prior period amounts have been adjusted to conform to the way the Company internally managed and monitored segment performance during the current fiscal year.

Revenue and cost of revenue are generally directly attributed to the segments. Certain revenue contracts are allocated among the segments based on the relative value of the underlying products and services. Cost of revenue is directly charged in most cases and allocated in certain cases based upon proportional usage.

Operating expenses are attributed to the segment groups as follows:

· Research and development expenses are primarily directly recorded to each segment group based on identified products supported.

· Sales and marketing expenses are primarily directly recorded to each segment group based on products supported and sold.

· General and administrative expenses, including costs of legal, information technology, human resources, finance, and integration and restructuring costs, are generally not allocated to the segments unless directly attributable.

· Gains, losses and other items, net are not allocated to the segment groups.

The following tables present information by business segment (dollars in thousands).  The prior-year segment information has been restated to conform to the new segment presentation:

	For the quarter ended September 30						For the six months ended September 30
	2015			2014			2015			2014
Revenues:
Marketing Services and Audience Solutions	$	185,101		$	190,776		$	361,377		$	373,125
Connectivity	22,224			13,472			42,863			17,806
Total revenues	$	207,345		$	204,248		$	404,240		$	390,931
Gross profit:
Marketing Services and Audience Solutions	$	76,030		$	82,652		$	148,049		$	159,876
Connectivity	10,081			(1,249		)	18,690			(4,880		)
Corporate	(78		)	—			(1,520		)	—
Total gross profit	$	86,033		$	81,403		$	165,219		$	154,996
Income (loss) from operations:
Marketing Services and Audience Solutions	$	41,586		$	52,302		$	79,873		$	98,523
Connectivity	(10,192		)	(20,277		)	(18,217		)	(34,538		)
Corporate	(33,450		)	(38,468		)	(66,581		)	(83,514		)
Total loss from operations	$	(2,056	)	$	(6,443	)	$	(4,925	)	$	(19,529	)