9. SEGMENT AND GEOGRAPHIC REPORTING

6 Months Ended

Feb. 28, 2017

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 28, 2017 and February 29, 2016 (in thousands):

Three months ended February 28, 2017
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	4,042	$	1,663				$	5,705
Income (loss) from operations		1,569		226					1,795
Identifiable assets		26,630		9,369	$	(7,238	)		28,761
Capital expenditures		4		43					47
Capitalized software costs		319		30					349
Depreciation and amortization		421		96					517

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
Total 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

Six months ended February 28, 2017
	Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	7,738	$	3,386				$	11,124
Income (loss) from operations		3,058		665					3,723
Total assets		26,630		9,369	$	(7,238	)		28,761
Capital expenditures		25		80					105
Capitalized software costs		531		53					584
Depreciation and Amortization		838		195					1,033

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

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 28, 2017 and February 29, 2016 were as follows (in thousands):

Three months ended February 28, 2017
		North America		Europe		Asia		South America		Total
	Lancaster	$	1,755	$	1,337	$	950	$	1	$	4,042
	Buffalo		1,663		0		0		0		1,663
	Total	$	3,418	$	1,337	$	950	$	1	$	5,705

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

Six months ended February 28, 2017
		North America		Europe		Asia		South America		Total
	Lancaster	$	3,728	$	2,058	$	1,951	$	1	$	7,738
	Buffalo		3,386		–		–		–		3,386
	Total	$	7,114	$	2,058	$	1,951	$	1	$	11,124

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