Segment and Geographic Information

3 Months Ended

Sep. 30, 2011

Segment and Geographic Information [Abstract]

Segment and Geographic Information

12.  Segment and Geographic Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our Chief Executive Officer.

We have three operating segments: license, maintenance and training, and professional services.  The chief operating decision maker assesses financial performance and allocates resources based upon the three lines of business.

The license line of business is engaged in the development and licensing of software. The maintenance and training line of business provides customers with a wide range of support services that include on-site support, telephone support, software updates and various forms of training on how to use our products.  The professional services line of business offers implementation, advanced process control, real-time optimization and other professional services in order to provide its customers with complete solutions.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (refer to Note 2). We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to show assets, capital expenditures, depreciation or amortization by operating segments.

The following table presents a summary of operating segments (dollars in thousands):

			Maintenance,
			Training		Professional
	License		and Other		Services			Total
Three Months Ended September 30, 2011
Segment revenue	$	31,910	$	14,167	$	5,148		$	51,225
Segment expenses		16,552		2,692		6,398			25,642
Segment operating profit (1)	$	15,358	$	11,475	$	(1,250	)	$	25,583
Three Months Ended September 30, 2010
Segment revenue	$	18,967	$	17,470	$	6,663		$	43,100
Segment expenses		14,393		3,137		5,940			23,470
Segment operating profit (1)	$	4,574	$	14,333	$	723		$	19,630

(1) The Segment operating profits reported reflect only the direct expenses of the operating segment and do not contain an allocation for selling and marketing, general and administrative, development, restructuring and other corporate expenses incurred in support of the segments.

Reconciliation to Loss Before Provision for Taxes

The following table presents a reconciliation of total segment operating profit to loss before income taxes for the three months ended September 30, 2011 and 2010 (dollars in thousands):

	Three Months Ended
	September 30,
	2011			2010
Total segment operating profit for reportable segments	$	25,583		$	19,630
Cost of license		(2,724	)		(2,122	)
Selling and marketing		(3,868	)		(3,237	)
Research and development		(11,573	)		(10,349	)
General and administrative and overhead		(19,408	)		(20,856	)
Stock-based compensation		(3,708	)		(2,697	)
Restructuring charges		73			(77	)
Other (expense) income, net		(2,032	)		2,664
Interest income (net)		1,139			2,458
Loss before income taxes	$	(16,518	)	$	(14,586	)