SEGMENT INFORMATION:

9 Months Ended

Dec. 31, 2016

SEGMENT INFORMATION:

SEGMENT INFORMATION:

11.SEGMENT INFORMATION:

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

Revenues 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, excluding non-cash stock compensation expense and purchased intangible asset amortization, is directly charged in most cases and allocated in certain cases based upon proportional usage. 

Operating expenses, excluding non-cash stock compensation expense and purchased intangible asset amortization, 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 are generally not allocated to the segments. 

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

We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment.

The following table presents information by business segment (dollars in thousands):

	For the quarter ended				For the nine months ended
	December 31,				December 31,
	2016		2015		2016		2015
Revenues:
Marketing Services	$	101,177	$	115,725	$	316,571	$	336,430
Audience Solutions		83,399		77,046		235,669		217,718
Connectivity		38,736		28,422		103,140		71,285
Total segment revenues	$	223,312	$	221,193	$	655,380	$	625,433
Gross profit(1):
Marketing Services	$	37,494	$	38,561	$	109,440	$	112,140
Audience Solutions		53,120		45,265		143,030		121,259
Connectivity		23,091		16,130		60,509		41,582
Total segment gross profit	$	113,705	$	99,956	$	312,979	$	274,981
Income (loss) from operations(1):
Marketing Services	$	21,127	$	20,309	$	61,109	$	55,070
Audience Solutions		34,572		30,723		89,640		80,000
Connectivity		1,877		(1,015)		3,831		(2,874)
Total segment income from operations	$	57,576	$	50,017	$	154,580	$	132,196

⁽¹⁾ Gross profit and Income (loss) from operations reflect only the direct and allocable controllable costs of each segment and do not include allocations of corporate expenses (primarily general and administrative expenses) and gains, losses, and other items, net. Additionally, Gross profit and Income (loss) from operations do not reflect non-cash stock compensation expense and purchased intangible asset amortization.

The following table reconciles total operating segment gross profit to gross profit and total operating segment income from operations to income (loss) from operations:

	For the quarter ended				For the nine months ended
	December 31,				December 31,
	2016		2015		2016		2015
Total segment gross profit	$	113,705	$	99,956	$	312,979	$	274,981
Less:
Purchased intangible asset amortization		4,621		3,754		12,588		11,263
Non-cash stock compensation		2,240		666		4,404		1,443
Accelerated amortization		—		78		—		1,598
Gross profit	$	106,844	$	95,458	$	295,988	$	260,677
Total segment income from operations	$	57,576	$	50,017	$	154,580	$	132,196
Less:
Corporate expenses (principally general and administrative)		24,185		27,827		75,342		76,868
Separation and transformation costs included in general and administrative		4,118		6,628		5,573		16,140
Gains, losses and other items, net		2,111		4,058		2,725		7,369
Impairment of goodwill and other		—		—		—		729
Purchased intangible asset amortization		4,621		3,754		12,588		11,262
Non-cash stock compensation		13,427		8,046		33,955		23,529
Accelerated amortization		—		78		—		1,598
Income (loss) from operations	$	9,115	$	(374)	$	24,397	$	(5,299)