SEGMENT INFORMATION:

3 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION:

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 unless directly attributable.

• 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 three months ended
	June 30,
	2017			2016
Revenues:
Marketing Services	$	91,594		$	109,715
Audience Solutions	75,734			73,744
Connectivity	45,186			31,342
Total segment revenues	$	212,514		$	214,801
Gross profit(1):
Marketing Services	$	31,358		$	37,466
Audience Solutions	47,210			41,912
Connectivity	27,525			17,575
Total segment gross profit	$	106,093		$	96,953
Income (loss) from operations(1):
Marketing Services	$	19,784		$	20,145
Audience Solutions	28,542			25,096
Connectivity	(48		)	291
Total segment income from operations	$	48,278		$	45,532

⁽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, segment 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 segment gross profit to gross profit and total operating segment income from operations to income (loss) from operations (dollars in thousands): 

	For the three months ended
	June 30,
	2017			2016
Total segment gross profit	$	106,093		$	96,953
Less:
Purchased intangible asset amortization	5,966			4,077
Non-cash stock compensation	1,573			894
Gross profit	$	98,554		$	91,982
Total segment income from operations	$	48,278		$	45,532
Less:
Corporate expenses (principally general and administrative)	25,967			24,389
Separation and transformation costs included in general and administrative	7,119			—
Gains, losses and other items, net	(98		)	314
Purchased intangible asset amortization	5,966			4,077
Non-cash stock compensation	15,031			8,590
Income (loss) from operations	$	(5,707	)	$	8,162