Business Segments and International Operations

6 Months Ended

May 31, 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						Six Months Ended
(In thousands)	May 31, 2016			May 31, 2015			May 31, 2016			May 31, 2015
Segment revenue:
OpenEdge	$	66,928		$	71,906		$	131,061		$	141,377
Data Connectivity and Integration	10,005			7,275			16,601			14,388
Application Development and Deployment	19,185			9,636			37,937			14,433
Total revenue	96,118			88,817			185,599			170,198
Segment costs of revenue and operating expenses:
OpenEdge	17,296			18,446			35,360			37,980
Data Connectivity and Integration	3,134			3,133			6,035			6,383
Application Development and Deployment	9,724			10,851			18,535			20,235
Total costs of revenue and operating expenses	30,154			32,430			59,930			64,598
Segment contribution:
OpenEdge	49,632			53,460			95,701			103,397
Data Connectivity and Integration	6,871			4,142			10,566			8,005
Application Development and Deployment	9,461			(1,215		)	19,402			(5,802		)
Total contribution	65,964			56,387			125,669			105,600
Other unallocated expenses (1)	53,620			59,122			106,620			119,521
Income (loss) from operations	12,344			(2,735		)	19,049			(13,921		)
Other (expense) income, net	(1,361		)	(1,025		)	(3,186		)	(93		)
Income (loss) before income taxes	$	10,983		$	(3,760	)	$	15,863		$	(14,014	)
(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, 2016		May 31, 2015		May 31, 2016		May 31, 2015
Software licenses	$	28,787	$	28,722	$	52,742	$	53,953
Maintenance	59,485		52,656		117,821		101,894
Professional services	7,846		7,439		15,036		14,351
Total	$	96,118	$	88,817	$	185,599	$	170,198

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, 2016		May 31, 2015		May 31, 2016		May 31, 2015
North America	$	53,392	$	47,520	$	102,457	$	89,644
EMEA	31,577		31,146		62,798		59,010
Latin America	4,389		4,388		8,082		9,356
Asia Pacific	6,760		5,763		12,262		12,188
Total	$	96,118	$	88,817	$	185,599	$	170,198