Segments and Related Infiormation

3 Months Ended

Mar. 31, 2013

Segments and Related Infiormation

6.  SEGMENTS AND RELATED INFORMATION

The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company's subsidiaries operating enterprise-wide outsourced state and local government portals and the corporate divisions that directly support portal operations. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and services, other than enterprise-wide outsourced portal services, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and has been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Unallocated corporate-level expenses are reported in the reconciliation of the segment totals to the related consolidated totals as "Other Reconciling Items." There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and operating segments.

The measure of profitability by which management, including the Company’s chief operating decision maker, evaluates the performance of its segments and allocates resources to them is operating income (loss). Segment assets or other segment balance sheet information is not presented to the Company’s chief operating decision maker. Accordingly, the Company has not presented information relating to segment assets.

The table below reflects summarized financial information for the Company's reportable and operating segments for the three months ended March 31 (in thousands):

	Outsourced Portals		Other Software & Services		Other Reconciling Items			Consolidated Total
2013
Revenues	$	58,042	$	3,182	$	-		$	61,224
Costs & expenses		34,875		1,205		7,393			43,473
Depreciation & amortization		1,947		15		65			2,027
Operating income (loss)	$	21,220	$	1,962	$	(7,458	)	$	15,724
2012
Revenues	$	45,712	$	3,031	$	-		$	48,743
Costs & expenses		30,415		999		6,229			37,643
Amortization of acquisition-related
intangible assets		81		-		-			81
Depreciation & amortization		1,234		14		63			1,311
Operating income (loss)	$	13,982	$	2,018	$	(6,292	)	$	9,708

The following is a reconciliation of total segment operating income to total consolidated income before income taxes for the three months ended March 31 (in thousands):

Operating income to income before taxes
	2013			2012
Total segment operating income	$	23,182		$	16,000
Other reconciling items		(7,458	)		(6,292	)
Other expense, net		(19	)		(1	)
Consolidated income before income taxes	$	15,705		$	9,707

For the three-month periods ended March 31, 2013 and 2012, the Company's Texas portal contract accounted for approximately 24% and 21% of the Company's total consolidated revenues, respectively. No other state portal contract accounted for 10% or more of the Company's total consolidated revenues for the three-month periods ended March 31, 2013 or 2012, respectively.