9. SEGMENT AND GEOGRAPHIC REPORTING

6 Months Ended

Feb. 29, 2016

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 and six months ended February 29, 2016 and February 28, 2015 (in thousands):

Three months ended February 29, 2016

	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	3,648		1,516				$	5,164
Income (loss) from operations		1,470		246					1,716
Identifiable assets		25,854		9,267	$	(7,238	)		27,903
Capital expenditures		0		1					1
Capitalized software costs		233		45					278
Depreciation and amortization		394		90					484

Three months ended February 28, 2015

	Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	3,303	$	1,271				$	4,574
Income (loss) from operations	$	1,288	$	187				$	1,475
Total assets	$	25,974	$	8,327	$	(7,238	)	$	27,063
Capital expenditures	$	0	$	0				$	0
Capitalized software costs	$	393	$	39				$	432
Depreciation and Amortization	$	431	$	91				$	458

Six months ended February 29, 2016

	Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	7,058	$	2,944				$	10,002
Income (loss) from operations	$	2,894	$	549				$	3,443
Total assets	$	25,854	$	9,267	$	(7,238	)	$	27,903
Capital expenditures	$	1	$	1				$	2
Capitalized software costs	$	455	$	90				$	545
Depreciation and Amortization	$	789	$	182				$	971

Six months ended February 28, 2015

	Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	6,254	$	2,406				$	8,660
Income (loss) from operations		1,975		249				$	2,224
Total assets	$	25,974	$	8,327	$	(7,238	)	$	27,063
Capital expenditures	$	17	$	3				$	20
Capitalized software costs	$	667	$	64				$	730
Depreciation and Amortization	$	798	$	182				$	980

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months and six months ended February 29, 2016 and February 28, 2015 were as follows (in thousands):

Three months ended February 29, 2016

	North America		Europe		Asia		South America		Total
Lancaster	$	1,331	$	1,490	$	827	$	0	$	3,648
Buffalo	$	1,516	$	0	$	0	$	0	$	1,516
Total	$	2,847	$	1,490	$	827	$	0	$	5,164

Three months ended February 28, 2015

	North America		Europe		Asia		South America		Total
Lancaster	$	1,459	$	1,265	$	578	$	1	$	3,303
Buffalo	$	1,271	$	0	$	0	$	0	$	1,271
Total	$	2,730	$	1,265	$	578	$	1	$	4,574

Six months ended February 29, 2016

	North America		Europe		Asia		South America		Total
Lancaster	$	2,793	$	2,404	$	1,860	$	1	$	7,058
Buffalo	$	2,944		–		–		–	$	2,944
Total	$	5,737	$	2,404	$	1,860	$	1	$	10,002

Six months ended February 28, 2015

	North America		Europe		Asia		South America		Total
Lancaster	$	2,805	$	1,905	$	1,543	$	1	$	6,254
Buffalo	$	2,406		–		–		–	$	2,406
Total	$	5,211	$	1,905	$	1,543	$	1	$	8,660