9. SEGMENT AND GEOGRAPHIC REPORTING

3 Months Ended

Nov. 30, 2015

Segments, Geographical Areas [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

We account for segments and geographic revenues in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services.

Results for each segment and consolidated results are as follows for the three months ended November 30, 2015 and (in thousands):

November 30, 2015
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	3,410	$	1,428				$	4,838
Income (loss) from operations		1,424		304					1,728
Identifiable assets		26,002		9,194	$	(7,238	)		27,958
Capital expenditures		1		0					1
Capitalized software costs		223		44					267
Depreciation and amortization		395		91					486

November 30, 2014
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	2,951	$	1,135				$	4,086
Income (loss) from operations		686		63					749
Identifiable assets		25,905		8,441	$	(7,238	)		27,108
Capital expenditures		17		3					20
Capitalized software costs		274		24					298
Depreciation and amortization		367		91					458

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months ended November 30, 2015 and 2014 were as follows (in thousands):

November 30, 2015
		North America		Europe		Asia		South America		Total
Lancaster	$	1,462	$	914	$	1,032	$	1	$	3,410
Buffalo		1,428		–		–		–		1,428
Total		2,280		773		1,032		1		4,838

November 30, 2014
		North America		Europe		Asia		South America		Total
Lancaster	$	1,346	$	640	$	965	$	–	$	2,951
Buffalo		1,135		–		–		–		1,135
Total		2,481		640		965		–		4,086