Business Segments and International Operations

3 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Segment Information

Business Segments and International Operations

Operating segments 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. Our chief operating decision maker is our Chief Executive Officer.

Effective September 1, 2014, we began operating as three distinct business units: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment, each with dedicated sales, product management and product marketing functions. As a result of these changes, we began segment reporting for our three business units beginning in the fourth fiscal quarter of 2014. The segment information for the prior periods presented has been restated to reflect the change in our reportable segments.

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

The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated (loss) income before income taxes:

	Three Months Ended
(In thousands)	February 28, 2015			February 28, 2014
Segment revenue:
OpenEdge	$	69,471		$	66,734
Data Connectivity and Integration	7,113			7,639
Application Development and Deployment	4,797			165
Total revenue	81,381			74,538
Segment costs of revenue and operating expenses:
OpenEdge	19,534			17,391
Data Connectivity and Integration	3,250			2,797
Application Development and Deployment	9,384			1,553
Total costs of revenue and operating expenses	32,168			21,741
Segment contribution:
OpenEdge	49,937			49,343
Data Connectivity and Integration	3,863			4,842
Application Development and Deployment	(4,587		)	(1,388		)
Total contribution	49,213			52,797
Other unallocated expenses (1)	60,399			38,795
(Loss) income from operations	(11,186		)	14,002
Other income (expense), net	933			6
(Loss) income before income taxes	$	(10,253	)	$	14,008
(1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses.

Our revenues are derived from licensing our products, and from related services, which consist of maintenance and consulting and education. Information relating to revenue from customers by revenue type is as follows (in thousands):

	Three Months Ended
(In thousands)	February 28, 2015		February 28, 2014
Software licenses	$	25,231	$	22,264
Maintenance	49,239		50,181
Professional services	6,911		2,093
Total	$	81,381	$	74,538

In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):

	Three Months Ended
(In thousands)	February 28, 2015		February 28, 2014
North America	$	42,125	$	34,586
EMEA	27,863		29,315
Latin America	4,967		5,108
Asia Pacific	6,426		5,529
Total	$	81,381	$	74,538