SEGMENT RESULTS

6 Months Ended

Jan. 31, 2012

SEGMENT RESULTS [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT RESULTS

The Company manages its operations in two business segments, which are defined as follows:

• On Demand Messaging Segment, which includes all electronic fax, e-mail, document capture and management (“DCM”), workflow and notifications services.

• Supply Chain Messaging Segment, which includes all of our electronic data interchange (“EDI”) and telex services.

Segment information for the three and six months ended January 31, 2012 and 2011 is as follows:

	Three Months				Six Months
	2012		2011		2012		2011
Revenue from external customers
On Demand	$	35,751	$	37,934	$	73,440	$	50,888
Supply Chain	8,754		9,491		18,080		19,272
Total Service revenues, net	$	44,505	$	47,425	$	91,520	$	70,160

The following is a reconciliation of operating segment income to net income for the three and six months ended January 31, 2012 and 2011:

	Three Months						Six Months
	2012			2011			2012			2011
Operating segment income
On Demand	$	23,284		$	22,862		$	47,460		$	31,761
Supply Chain	6,655			7,069			13,786			14,314
Segment gross profit	29,939			29,931			61,246			46,075
Corporate expenses	22,046			22,732			45,827			35,217
Acquisition and integration related	—			817			448			2,415
Operating income	7,893			6,382			14,971			8,443
Other income (expense), net	(1,869		)	(1,575		)	(3,406		)	(2,077		)
Income before income taxes	6,024			4,807			11,565			6,366
Provision for income taxes	3,155			1,868			5,394			2,460
Net Income	$	2,869		$	2,939		$	6,171		$	3,906

The Company does not currently break out total assets by reportable segment as there is a high level of shared utilization between the segments.