9. SEGMENT AND GEOGRAPHIC REPORTING

9 Months Ended

May 31, 2016

Segment Reporting [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 nine months ended May 31, 2016 and 2015 (in thousands):

Three months ended May 31, 2016
		Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	4,664	$	1,348		–		$	6,012
Income (loss) from operations	$	2,577	$	211				$	2,788
Total assets	$	26,532	$	9,504	$	(7,238	)	$	28,798
Capital expenditures	$	3	$	27				$	30
Capitalized software costs	$	222	$	48				$	270
Depreciation and Amortization	$	381	$	98				$	479

Three months ended May 31, 2015
		Lancaster		Buffalo		Eliminations		Total
Net Revenues	$	4,541	$	1,401			$	5,942
Income (loss) from operations	$	2,477	$	377			$	2,854
Total assets	$	26,336	$	8,814	$	(7,238)	$	27,912
Capital expenditures	$	7	$	10			$	17
Capitalized software costs	$	193	$	53			$	246
Depreciation and Amortization	$	413	$	91			$	504

Nine months ended May 31, 2016
		Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	11,722	$	4,293				$	16,015
Income (loss) from operations	$	5,471	$	760				$	6,232
Total assets	$	26,532	$	9,504	$	(7,238	)	$	28,798
Capital expenditures	$	4	$	28				$	32
Capitalized software costs	$	678	$	138				$	816
Depreciation and Amortization	$	1,171	$	279				$	1,450

Nine months ended May 31, 2015
		Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	10,795	$	3,807				$	14,602
Income (loss) from operations	$	4,451	$	627				$	5,078
Total assets	$	26,336	$	8,814	$	(7,238	)	$	27,912
Capital expenditures	$	23	$	14				$	37
Capitalized software costs	$	860	$	116				$	976
Depreciation and Amortization	$	1,211	$	273				$	1,484

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months and nine months ended May 31, 2016 and 2015 were as follows (in thousands):

Three months ended May 31, 2016
		North America		Europe		Asia		South America		Total
Lancaster	$	2,444	$	1,247	$	973	$	–	$	4,664
Buffalo	$	1,348	$	–	$	–	$	–	$	1,348
Total	$	3,792	$	1,247	$	973	$	–	$	6,012

Three months ended May 31, 2015
		North America		Europe		Asia		South America		Total
Lancaster	$	2,239	$	1,287	$	1,003	$	12	$	4,541
Buffalo	$	1,401	$	–	$	–	$	–	$	1,401
Total	$	3,640	$	1,287	$	1,003	$	12	$	5,942

Nine months ended May 31, 2016
		North America		Europe		Asia		South America		Total
Lancaster	$	5,237	$	3,651	$	2,833	$	1	$	11,722
Buffalo	$	4,293	$	–	$	–	$	–	$	4,293
Total	$	9,530	$	3,651	$	2,833	$	1	$	16,015

Nine months ended May 31, 2015
		North America		Europe		Asia		South America		Total
Lancaster	$	5,029	$	3,201	$	2,552	$	13	$	10,795
Buffalo	$	3,807	$	–	$	–	$	–	$	3,807
Total	$	8,836	$	3,201	$	2,552	$	13	$	14,602