Business Segments and International Operations (Tables)

9 Months Ended

Aug. 31, 2020

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table provides revenue and contribution margin from our reportable segments and reconciles to our consolidated income from continuing operations before income taxes:


	Three Months Ended						Nine Months Ended
(In thousands)	August 31, 2020		August 31, 2019		August 31, 2020		August 31, 2019
Segment revenue:
OpenEdge	$	85,794	$	78,607	$	240,608	$	211,679
Data Connectivity and Integration	4,468		8,754		21,815		27,686
Application Development and Deployment	19,437		19,355		57,342		56,895
Total revenue	109,699		106,716		319,765		296,260
Segment costs of revenue and operating expenses:
OpenEdge	18,358		22,711		55,984		60,123
Data Connectivity and Integration	1,931		1,943		6,240		5,249
Application Development and Deployment	7,298		6,093		21,572		17,067
Total costs of revenue and operating expenses	27,587		30,747		83,796		82,439
Segment contribution margin:
OpenEdge	67,436		55,896		184,624		151,556
Data Connectivity and Integration	2,537		6,811		15,575		22,437
Application Development and Deployment	12,139		13,262		35,770		39,828
Total contribution margin	82,112		75,969		235,969		213,821
Other unallocated expenses⁽¹⁾	48,919		60,009		146,755		167,711
Income from operations	33,193		15,960		89,214		46,110
Other expense, net	(2,962)		(3,718)		(9,206)		(8,038)
Income before income taxes	$	30,231	$	12,242	$	80,008	$	38,072
⁽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: certain product development and corporate sales and marketing expenses, customer support, administration, amortization of acquired intangibles, stock-based compensation, restructuring, and acquisition-related expenses.

Revenue from External Customers by Products and Services

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


	Three Months Ended						Nine Months Ended
(In thousands)	August 31, 2020		August 31, 2019		August 31, 2020		August 31, 2019
Performance obligations transferred at a point in time:
Software licenses	$	27,514	$	30,686	$	77,806	$	83,216
Performance obligations transferred over time:
Maintenance	72,764		67,611		214,506		190,138
Services	9,421		8,419		27,453		22,906
Total revenue	$	109,699	$	106,716	$	319,765	$	296,260

Revenue from External Customers from Different Geographical Areas

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 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						Nine Months Ended
(In thousands)	August 31, 2020		August 31, 2019		August 31, 2020		August 31, 2019
North America	$	62,927	$	60,208	$	184,904	$	163,766
EMEA	37,447		35,109		106,592		102,114
Latin America	3,547		5,470		10,893		14,039
Asia Pacific	5,778		5,929		17,376		16,341
Total revenue	$	109,699	$	106,716	$	319,765	$	296,260