Business Segments and International Operations

3 Months Ended

Feb. 29, 2016

Segment Reporting [Abstract]

Business 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 the combination of our Chief Executive Officer and Chief Operating Officer.

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 income (loss) before income taxes:

	Three Months Ended
(In thousands)	February 29, 2016			February 28, 2015
Segment revenue:
OpenEdge	$	64,133		$	69,471
Data Connectivity and Integration	6,596			7,113
Application Development and Deployment	18,752			4,797
Total revenue	89,481			81,381
Segment costs of revenue and operating expenses:
OpenEdge	18,064			19,534
Data Connectivity and Integration	2,901			3,250
Application Development and Deployment	8,811			9,384
Total costs of revenue and operating expenses	29,776			32,168
Segment contribution:
OpenEdge	46,069			49,937
Data Connectivity and Integration	3,695			3,863
Application Development and Deployment	9,941			(4,587		)
Total contribution	59,705			49,213
Other unallocated expenses (1)	53,000			60,399
Income (loss) from operations	6,705			(11,186		)
Other (expense) income, net	(1,825		)	933
Income (loss) before income taxes	$	4,880		$	(10,253	)
(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 29, 2016		February 28, 2015
Software licenses	$	23,955	$	25,231
Maintenance	58,336		49,239
Professional services	7,190		6,911
Total	$	89,481	$	81,381

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 29, 2016		February 28, 2015
North America	$	49,065	$	42,125
EMEA	31,221		27,863
Latin America	3,693		4,967
Asia Pacific	5,502		6,426
Total	$	89,481	$	81,381