9. SEGMENT AND GEOGRAPHIC REPORTING

9 Months Ended

May 31, 2017

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, 2017 and 2016 (in thousands):

Three months ended May 31, 2017
	Lancaster		Buffalo		Eliminations			Total
Net revenues	$	4,948	$	1,801				$	6,749
Income (loss) from operations		2,681		414					3,095
Identifiable assets		27,428		9,358	$	(7,238	)		29,548
Capital expenditures		12		0					12
Capitalized software costs		278		66					344
Depreciation and amortization		422		92					514

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

Nine months ended May 31, 2017
	Lancaster		Buffalo		Eliminations			Total
Net Revenues	$	12,685	$	5,187				$	17,872
Income (loss) from operations		5,739		1,079					6,818
Total assets		27,428		9,358	$	(7,238	)		29,548
Capital expenditures		37		80					117
Capitalized software costs		809		120					929
Depreciation and Amortization		1,261		286					1,547

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

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

Three months ended May 31, 2017
	North America		Europe		Asia		South America		Total
Lancaster	$	2,533	$	1,144	$	1,271	$	0	$	4,948
Buffalo		1,801		0		0		0		1,801
Total	$	4,334	$	1,144	$	1,271	$	0	$	6,749

Three months ended May 31, 2016
	North America		Europe		Asia		South America		Total
Lancaster	$	2,444	$	1,247	$	973	$	0	$	4,664
Buffalo		1,348		0		0		0		1,348
Total	$	3,792	$	1,247	$	973	$	0	$	6,012

Nine months ended May 31, 2017
	North America		Europe		Asia		South America		Total
Lancaster	$	6,261	$	3,201	$	3,222	$	1	$	12,685
Buffalo		5,187		–		–		–		5,187
Total	$	11,448	$	3,201	$	3,222	$	1	$	17,872

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