Business Segments

6 Months Ended

Sep. 30, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Business Segments

Business Segments

Description of Business Segments

Agilysys has two reportable business segments: HSG and RSG. The reportable segments are each managed separately and are supported by various practices as well as company-wide functional departments. These functional support departments include general accounting and finance, accounts payable, tax, information technology, legal, payroll, and benefits and a portion of these costs are reported in Corporate/Other. Corporate/Other is not a reportable business segment as defined by GAAP. As a result of the sale of the TSG business during fiscal 2012, and the TSA with OnX, Corporate/Other costs have been adjusted for the period presented to remove the portion of the functional support department costs that were transferred to OnX.

Measurement of Segment Operating Results and Segment Assets

We evaluate performance and allocate resources to our reportable segments based on operating income. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies elsewhere in the footnotes to the consolidated financial statements. Intersegment sales are recorded at pre-determined amounts to allow for intercompany profit to be included in the operating results of the individual reportable segments. Such intercompany profit is eliminated for consolidated financial reporting purposes.

Our Chief Executive Officer, who is the Chief Operating Decision Maker, does not evaluate a measurement of segment assets when evaluating the performance of our reportable segments. As such, information relating to segment assets is not provided in the financial information below.

The following tables present segment profit and related information for each of our reportable segments for the three and six months endedSeptember 30, 2012 and 2011.

(In thousands)	Reportable Segments						Corporate/
	HSG			RSG			Other			Consolidated
Three Months Ended September 30, 2012
Total revenue:
Products	$	7,281		$	17,653		$	—		$	24,934
Support, maintenance and subscription services	12,963			6,799			—			19,762
Professional services	3,989			5,812			—			9,801
Elimination of intersegment revenue	—			(251		)	—			(251		)
Revenue from external customers	$	24,233		$	30,013		—			$	54,246
Gross profit	$	15,857		$	6,224		$	—		$	22,081
Gross profit margin	65.4		%	20.7		%				40.7		%
Operating income (loss)	$	3,212		$	2,124		$	(5,875	)	$	(539	)
Interest expense, net	—			—			14			14
Other income, net	—			—			(161		)	(161		)
Income (loss) from continuing operations before income taxes	$	3,212		$	2,124		$	(5,728	)	$	(392	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	661		$	170		$	702		$	1,533
Restructuring, severance and other charges	$	322		$	—		$	108		$	430
Three Months Ended September 30, 2011
Total revenue:
Products	$	7,235		$	19,473		$	—		$	26,708
Support, maintenance and subscription services	11,411			6,709			—			18,120
Professional services	3,630			4,443			—			8,073
Elimination of intersegment revenue	—			(216		)	—			(216		)
Revenue from external customers	$	22,276		$	30,409		—			$	52,685
Gross profit	$	14,233		$	6,766		$	—		$	20,999
Gross profit margin	63.9		%	22.2		%				39.9		%
Operating income (loss)	$	1,189		$	1,921		$	(8,940	)	$	(5,830	)
Interest expense, net	—			—			522			522
Other expense, net	—			—			308			308
Income (loss) from continuing operations before income taxes	$	1,189		$	1,921		$	(9,770	)	$	(6,660	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	649		$	154		$	1,236		$	2,039
Restructuring, severance and other charges	$	619		$	231		$	2,838		$	3,688

(In thousands)	Reportable Segments						Corporate/
	HSG			RSG			Other			Consolidated
Six Months Ended September 30, 2012
Total revenue:
Products	$	13,836		$	35,216		$	—		$	49,052
Support, maintenance and subscription services	25,356			13,066			—			38,422
Professional services	7,429			11,494			—			18,923
Elimination of intersegment revenue	(30		)	(475		)	—			(505		)
Revenue from external customers	$	46,591		$	59,301		$	—		$	105,892
Gross profit	$	30,522		$	11,937		$	—		$	42,459
Gross profit margin	65.5		%	20.1		%				40.1		%
Operating income (loss)	$	6,256		$	3,842		$	(12,187	)	$	(2,089	)
Interest expense, net	—			—			161			161
Other income, net	—			—			(18		)	(18		)
Income (loss) from continuing operations before income taxes	$	6,256		$	3,842		$	(12,330	)	$	(2,232	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	1,325		$	310		$	1,478		$	3,113
Asset impairments and related charges	$	208		—			—			$	208
Restructuring, severance and other charges	$	915		—			$	640		$	1,555
Six Months Ended September 30, 2011
Total revenue:
Products	$	11,781		$	42,881		$	—		$	54,662
Support, maintenance and subscription services	23,048			12,776			—			35,824
Professional services	6,981			8,204			—			15,185
Elimination of intersegment revenue	—			(395		)	—			(395		)
Revenue from external customers	$	41,810		$	63,466		$	—		$	105,276
Gross profit	$	26,230		$	12,857		$	—		$	39,087
Gross profit margin	62.7		%	20.3		%				37.1		%
Operating (loss) income	$	211		$	3,730		$	(18,133	)	$	(14,192	)
Interest expense, net	—			—			827			827
Other expense, net	—			—			271			271
Income (loss) from continuing operations before income taxes	$	211		$	3,730		$	(19,231	)	$	(15,290	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	1,238		$	304		$	2,440		$	3,982
Restructuring, severance and other charges	$	806		$	365		$	4,863		$	6,034