Segment Information

6 Months Ended

May 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments, as defined under GAAP, are components of an enterprise about which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. We internally report results to our chief operating decision maker on both a product group basis and a functional basis. Our product groups represent our reportable segments for financial reporting purposes. However, our organization is managed primarily on a functional basis. We assign dedicated costs and expenses, primarily costs of revenue and product development, directly to each segment and utilize an allocation methodology to assign all other costs and expenses, primarily sales and marketing and general and administrative, to each segment. A significant portion of the total costs and expenses assigned to each segment are allocated. Our chief operating decision maker is our Chief Executive Officer.

Our internal reporting through the second quarter of fiscal 2012 included three segments, each of which met the criteria for segment reporting: (1) Application Development Platforms, which includes the OpenEdge, Orbix, Orbacus and ObjectStore products; (2) Enterprise Business Solutions, which includes the Apama, Sonic, Artix, Actional, Savvion, Corticon, Control Tower and FuseSource products; and (3) Enterprise Data Solutions, which includes the DataDirect Connect, DataDirect Shadow and DataXtend products.

We do not manage our assets or capital expenditures by segment or assign other income and income taxes to segments. We manage and report such items on a consolidated company basis.

The following table provides revenue and (loss) income from operations for our reportable segments on an interim basis (in thousands):

	Three Months Ended						Six Months Ended
	May 31, 2012			May 31, 2011			May 31, 2012			May 31, 2011
Revenue:
Application Development Platform segment	$	71,898		$	83,896		$	147,467		$	162,973
Enterprise Business Solutions segment	29,940			34,162			60,834			71,289
Enterprise Data Solutions segment	12,758			16,626			30,721			34,659
Total revenue	$	114,596		$	134,684		$	239,022		$	268,921
(Loss) income from operations:
Application Development Platform segment	$	40,557		$	48,183		$	82,338		$	94,839
Enterprise Business Solutions segment	(21,949		)	(9,272		)	(42,615		)	(16,153		)
Enterprise Data Solutions segment	949			890			5,961			2,402
Unallocated items:
Amortization of acquired intangibles	(5,398		)	(5,912		)	(10,953		)	(12,161		)
Stock-based compensation	(6,669		)	(5,103		)	(13,760		)	(9,287		)
Transition expenses	—			(432		)	—			(856		)
Restructuring expenses	(8,496		)	(1,144		)	(8,496		)	(3,258		)
Acquisition-related expenses	—			—			(215		)	—
Litigation settlement	—			—			(900		)	—
Proxy contest-related costs	(2,766		)	—			(3,238		)	—
Total (loss) income from operations	$	(3,772	)	$	27,210		$	8,122		$	55,526

Unallocated items are excluded from segment (loss) income from operations as such amounts are not deducted from internal measurements of (loss) income from operations, and are not allocated to our reportable segments. In the first quarter of fiscal 2012, we eliminated our internal reporting use of purchase accounting adjustments for deferred revenue related to acquisitions, which had the impact of decreasing segment revenue and (loss) income from operations reported in the prior fiscal periods presented. We have revised the prior periods presented to reflect this change.

In the following table, revenue attributed to North America includes sales to customers in the U.S. and Canada and licensing to certain multinational organizations, substantially all of which is invoiced from the U.S. Revenue from Europe, Middle East and Africa (EMEA), Latin America and Asia Pacific includes shipments to customers in each region, not including certain multinational organizations, plus export shipments into each region that are billed from the U.S. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):

	Three Months Ended				Six Months Ended
	May 31, 2012		May 31, 2011		May 31, 2012		May 31, 2011
North America	$	54,703	$	60,448	$	114,770	$	124,926
EMEA	43,040		52,908		87,457		104,323
Latin America	8,324		9,415		17,653		18,574
Asia Pacific	8,529		11,913		19,142		21,098
Total revenue	$	114,596	$	134,684	$	239,022	$	268,921