Note 10 - Operating Segments

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

10

 - Operating Segments

The Company’s reportable segments are: (i) the Traditional Business and (ii) Journal Technologies. All inter-segment transactions were eliminated. Summarized financial information regarding the Company’s reportable segments is shown in the following table:

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended December 31, 2019
Revenues
Advertising	$	2,126,000		$	---		$	---		$	2,126,000
Circulation		1,312,000			---			---			1,312,000
Advertising service fees and other		694,000			---			---			694,000
Licensing and maintenance fees		---			5,210,000			---			5,210,000
Consulting fees		---			689,000			---			689,000
Other public service fees		---			1,646,000			---			1,646,000
Operating expenses		3,998,000			9,197,000			---			13,195,000
Income (loss) from operations		134,000			(1,652,000	)		---			(1,518,000	)
Dividends and interest income		---			---			1,680,000			1,680,000
Other income		---			---			3,000			3,000
Net unrealized gains on investments		---			---			19,531,000			19,531,000
Interest expenses on note payable collateralized by real estate		(22,000	)		---			---			(22,000	)
Interest expenses on margin loans		---			---			(184,000	)		(184,000	)
Pretax income (loss)		112,000			(1,652,000	)		21,030,000			19,490,000
Income tax (expense) benefit		(30,000	)		510,000			(5,760,000	)		(5,280,000	)
Net income (loss)		82,000			(1,142,000	)		15,270,000			14,210,000
Total assets		17,541,000			20,993,000			216,325,000			254,859,000
Capital expenditures		35,000			62,000			---			97,000

	Reportable Segments
	Traditional Business			Journal Technologies			Corporate income and expenses			Total
Three months ended December 31, 2018
Revenues
Advertising	$	2,192,000		$	---		$	---		$	2,192,000
Circulation		1,338,000			---			---			1,338,000
Advertising service fees and other		669,000			---			---			669,000
Licensing and maintenance fees		---			4,790,000			---			4,790,000
Consulting fees		---			541,000			---			541,000
Other public service fees		---			898,000			---			898,000
Operating expenses		4,208,000			8,741,000			---			12,949,000
Loss from operations		(9,000	)		(2,512,000	)		---			(2,521,000	)
Dividends and interest income		---			---			1,530,000			1,530,000
Other income		---			---			10,000			10,000
Net unrealized losses on investments		---			---			(28,640,000	)		(28,640,000	)
Interest expenses on note payable collateralized by real estate		(23,000	)		---			---			(23,000	)
Interest expenses on margin loans		---			---			(206,000	)		(206,000	)
Pretax (loss) income		(32,000	)		(2,512,000	)		(27,306,000	)		(29,850,000	)
Income tax benefit (expense)		80,000			585,000			7,652,000			8,317,000
Net income (loss)		48,000			(1,927,000	)		(19,654,000	)		(21,533,000	)
Total assets		18,702,000			30,571,000			185,843,000			235,116,000
Capital expenditures		50,000			34,000			---			84,000

        During the

three

months ended

December 31, 2019,

the Traditional Business had total revenues of

$4,132,000

of which

$2,820,000

were recognized, at a point of time, after services were provided and

$1,312,000

were recognized ratably over the subscription terms. Total revenues for the Journal Technologies’ software business were

$7,545,000

of which

$2,454,000

were recognized upon completion of services with customer acceptance while

$5,091,000

were recognized ratably over the license and maintenance periods.

        During the

three

months ended

December 31, 2018,

the Traditional Business had total revenues of

$4,199,000

of which

$2,861,000

were recognized, at a point of time, after services were provided and

$1,338,000

were recognized ratably over the subscription terms.  Total revenues for the Company’s software business were

$6,229,000

of which

$1,935,000

were recognized upon completion of services with customer acceptance while

$4,294,000

were recognized ratably over the license and maintenance periods.

        Approximately

65%

of the Company’s revenues during the

three

-month period ended

December 31, 2019

were derived from Journal Technologies, as compared with

60%

in the prior year period. In addition, the Company’s revenues have been primarily from the United States with approximately

1%

from foreign countries. Journal Technologies’ revenues are primarily from governmental agencies.

        The following table sets forth certain deferred obligations from

October 1, 2019

through

December 31, 2019:

	Beginning Balance Oct. 1, 2019		Addition		Recognized			Ending Balance December 31, 2019
Deferred subscriptions	$	3,195,000	$	1,009,000	$	(1,312,000	)	$	2,892,000
Deferred installation contracts		1,932,000		888,000		(808,000	)		2,012,000
Deferred maintenance agreements and others		16,057,000		4,016,000		(5,091,000	)		14,982,000