Business Segments and International Operations

6 Months Ended

May. 31, 2015

Segment Reporting [Abstract]

Segment Segments and International Operations

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						Six Months Ended
(In thousands)	May 31, 2015			May 31, 2014			May 31, 2015			May 31, 2014
Segment revenue:
OpenEdge	$	71,906		$	73,192		$	141,377		$	139,926
Data Connectivity and Integration	7,275			7,407			14,388			15,046
Application Development and Deployment	9,636			228			14,433			393
Total revenue	88,817			80,827			170,198			155,365
Segment costs of revenue and operating expenses:
OpenEdge	18,446			15,855			37,980			33,246
Data Connectivity and Integration	3,133			2,601			6,383			5,398
Application Development and Deployment	10,851			1,763			20,235			3,316
Total costs of revenue and operating expenses	32,430			20,219			64,598			41,960
Segment contribution:
OpenEdge	53,460			57,337			103,397			106,680
Data Connectivity and Integration	4,142			4,806			8,005			9,648
Application Development and Deployment	(1,215		)	(1,535		)	(5,802		)	(2,923		)
Total contribution	56,387			60,608			105,600			113,405
Other unallocated expenses (1)	59,122			40,328			119,521			79,123
(Loss) income from operations	(2,735		)	20,280			(13,921		)	34,282
Other income (expense), net	(1,025		)	(129		)	(93		)	(123		)
(Loss) income before income taxes	$	(3,760	)	$	20,151		$	(14,014	)	$	34,159
(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				Six Months Ended
(In thousands)	May 31, 2015		May 31, 2014		May 31, 2015		May 31, 2014
Software licenses	$	28,722	$	27,988	$	53,953	$	50,252
Maintenance	52,656		50,305		101,894		100,486
Professional services	7,439		2,534		14,351		4,627
Total	$	88,817	$	80,827	$	170,198	$	155,365

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				Six Months Ended
(In thousands)	May 31, 2015		May 31, 2014		May 31, 2015		May 31, 2014
North America	$	47,520	$	36,827	$	89,644	$	71,413
EMEA	31,146		33,698		59,010		63,013
Latin America	4,388		5,703		9,356		10,811
Asia Pacific	5,763		4,599		12,188		10,128
Total	$	88,817	$	80,827	$	170,198	$	155,365