SEGMENT INFORMATION

6 Months Ended

Jan. 31, 2017

SEGMENT INFORMATION

(15) SEGMENT INFORMATION

The Company has four operating segments: Americas; Asia; Europe; and e-Business. Based on the information provided to the Company’s chief operating decision-maker (“CODM”) for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds, the Company has determined that it has four reportable segments: Americas, Asia, Europe and e-Business. During the prior year, the Company had determined that it had three reportable segments: Americas; Asia; and Europe. e-Business was reported as a part of the All Other category in the prior year. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance and public reporting costs, which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, Trading Securities, investments in affiliates, notes payables and other assets and liabilities which are not identifiable to the operations of the Company’s operating segments. All significant intra-segment amounts have been eliminated. The Company has recently had personnel reductions and facility consolidations, and is undergoing operational changes. Therefore, in the future, as the Company evolves, adjustments may be made as to how the Company allocates resources and analyzes performance, which can result in a change to these segments.

Summarized financial information of the Company’s continuing operations by operating segment is as follows:

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2017			2016			2017			2016
	(In thousands)
Net revenue:
Americas	$	27,183		$	28,208		$	53,061		$	61,419
Asia		38,861			44,476			81,734			98,407
Europe		44,910			38,656			90,091			83,399
e-Business		6,614			8,626			14,009			17,830
	$	117,568		$	119,966		$	238,895		$	261,055
Operating income (loss):
Americas	$	(1,721	)	$	(4,911	)	$	(5,577	)	$	(7,997	)
Asia		2,311			(325	)		4,088			3,046
Europe		41			(4,239	)		(2,550	)		(4,032	)
e-Business		(888	)		(397	)		(544	)		(901	)
Total Segment operating income (loss)		(257	)		(9,872	)		(4,583	)		(9,884	)
Corporate-level activity		(1,247	)		(1,791	)		(2,563	)		(3,348	)
Total operating loss		(1,504	)		(11,663	)		(7,146	)		(13,232	)
Total other expense		1,075			2,338			3,427			14,692
Loss before income taxes	$	(2,579	)	$	(14,001	)	$	(10,573	)	$	(27,924	)

	January 31,		July 31,
	2017		2016
	(In thousands)
Total assets:
Americas	$	29,289	$	28,280
Asia		75,079		89,242
Europe		71,996		75,952
e-Business		18,666		22,884
Sub-total - segment assets		195,030		216,358
Corporate		117,168		131,574
	$	312,198	$	347,932

Summarized financial information of the Company’s net revenue from external customers by group of services is as follows:

	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2017		2016		2017		2016
	(In thousands)
Supply chain services	$	110,954	$	111,340	$	224,886	$	243,225
e-Business services		6,614		8,626		14,009		17,830
	$	117,568	$	119,966	$	238,895	$	261,055

As of January 31, 2017, approximately $11.5 million, $3.2 million, $3.3 million, $2.5 million and $2.8 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland, China and Singapore, respectively. As of July 31, 2016, approximately $12.3 million, $3.0 million, $3.5 million, $3.0 million and $2.9 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland, China and Singapore, respectively.

For the three months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $27.5 million, $31.9 million, $20.0 million and $21.7 million, respectively. For the three months ended January 31, 2016, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $30.1 million, $37.5 million, $16.9 million and $18.7 million, respectively.

For the six months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $54.3 million, $68.1 million, $36.8 million and $48.0 million, respectively. For the six months ended January 31, 2016, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $65.1 million, $83.8 million, $37.6 million and $41.0 million, respectively.