SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; Direct Marketing; 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 five reportable segments: Americas, Asia, Europe, Direct Marketing and e-Business. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance, share-based compensation and acquisition costs which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, 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.

Management evaluates segment performance based on segment net revenue, operating income (loss) and “adjusted operating income (loss)”, which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of intangible assets, long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges, and therefore management uses adjusted operating income to assist in evaluating the performance of the Company’s core operations.

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



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands)
Net revenue:
Americas	$	17,164		$	13,061		$	51,313		$	41,664
Asia	39,312			31,820			128,123			111,622
Europe	16,747			22,942			56,718			99,225
Direct Marketing	116,006			120,646			362,547			180,178
e-Business	4,774			5,452			16,658			17,492
	$	194,003		$	193,921		$	615,359		$	450,181
Operating income (loss):
Americas	$	(1,733	)	$	(2,032	)	$	(5,752	)	$	(6,518	)
Asia	3,366			1,903			13,861			21,795
Europe	(1,154		)	(1,770		)	(3,980		)	(8,089		)
Direct Marketing	5,308			9,917			16,770			5,965
e-Business	(1,195		)	(1,646		)	(3,304		)	(4,437		)
Total Segment operating income (loss)	4,592			6,372			17,595			8,716
Corporate-level activity	(2,435		)	(4,992		)	(9,776		)	(16,869		)
Total operating income (loss)	2,157			1,380			7,819			(8,153		)
Total other expense	(10,386		)	(11,198		)	(32,650		)	(19,919		)
Loss before income taxes	$	(8,229	)	$	(9,818	)	$	(24,831	)	$	(28,072	)

For the nine months ended April 30, 2018, the net revenue and operating loss associated with Direct Marketing is for the period from December 15, 2017 to April 30, 2018. For this period, the Direct Marketing operating loss includes certain purchase accounting adjustments associated with the IWCO acquisition.



	April 30, 2019		July 31, 2018
	(In thousands)
Total assets:
Americas	$	23,236	$	22,820
Asia	46,562		44,322
Europe	37,351		37,223
Direct Marketing	601,602		642,820
e-Business	12,256		15,758
Sub-total—segment assets	721,007		762,943
Corporate	13,743		64,107
	$	734,750	$	827,050

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)
Supply chain services	$	73,223	$	67,823	$	236,154	$	252,511
e-Business services	4,774		5,452		16,658		17,492
Direct Marketing	116,006		120,646		362,547		180,178
	$	194,003	$	193,921	$	615,359	$	450,181

As of April 30, 2019, approximately $92.3 million of the Company’s long-lived assets were located in the U.S.A. As of July 31, 2018, approximately $101.8 million of the Company’s long-lived assets were located in the U.S.A.

For the three months ended April 30, 2019, the Company’s net revenues within U.S.A., China and Netherlands were $133.8 million, $32.2 million and $11.5 million, respectively. For the three months ended April 30, 2018, the Company’s net revenues within U.S.A., China and Netherlands were $129.3 million, $24.3 million and $13.3 million, respectively.

For the nine months ended April 30, 2019, the Company’s net revenues within U.S.A., China and Netherlands were $416.2 million, $106.8 million and $40.9 million, respectively. For the nine months ended April 30, 2018, the Company’s net revenues within U.S.A., China and Netherlands were $216.8 million, $87.3 million and $45.1 million, respectively.