Segment Information

9 Months Ended

Aug. 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments, as defined under GAAP, are components of an enterprise that engage in business activities for 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 directly to each segment and utilize an allocation methodology to assign all other costs and expenses, primarily general and administrative, to each segment. 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. Our chief operating decision maker is our Chief Executive Officer.

In the third quarter of fiscal 2012, as part of the Plan, we changed the structure of our internal organization and the way we manage our business (Note 1). Beginning in the third quarter of fiscal 2012, our internal reporting includes the following segments, each of which meet the criteria of a reportable segment: (1) the Core segment, which includes the OpenEdge, DataDirect Connect and Decision Analytics (comprised of Apama, Corticon and the Progress Control Tower) product lines; and (2) the non-Core segment, which includes the Actional, Artix, DataXtend, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic product lines. The segment information for the prior periods presented has been restated to reflect the change in our reportable segments.

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

	Three Months Ended						Nine Months Ended
	August 31, 2012			August 31, 2011			August 31, 2012			August 31, 2011
Revenue:
Core segment	$	78,317		$	88,683		$	243,934		$	267,160
Non-Core segment	28,856			35,828			93,224			119,211
Total revenue	$	107,173		$	124,511		$	337,158		$	386,371
Income (loss) from operations:
Core segment	$	20,461		$	39,327		$	84,066		$	119,192
Non-Core segment	8,868			(8,239		)	(7,382		)	(6,344		)
Unallocated items:
Amortization of acquired intangibles	(5,385		)	(5,875		)	(16,283		)	(17,979		)
Stock-based compensation	(7,139		)	(9,368		)	(20,720		)	(18,552		)
Transition expenses	—			(196		)	—			(1,054		)
Restructuring expenses	(2,787		)	(1,369		)	(11,175		)	(4,627		)
Acquisition-related expenses	—			—			(215		)	—
Litigation settlement	—			—			(900		)	—
Proxy contest-related costs	(21		)	—			(3,259		)	—
Total income from operations	$	13,997		$	14,280		$	24,132		$	70,636

Unallocated items are excluded from segment income from operations, as such amounts are not deducted from internal measurements of income from operations and are not allocated to our reportable segments.

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				Nine Months Ended
	August 31, 2012		August 31, 2011		August 31, 2012		August 31, 2011
North America	$	54,032	$	56,445	$	161,613	$	175,496
EMEA	37,472		47,376		123,120		150,515
Latin America	8,167		10,411		25,781		28,984
Asia Pacific	7,502		10,279		26,644		31,376
Total revenue	$	107,173	$	124,511	$	337,158	$	386,371