Business Segments, Significant Customer and Geographic Information

12 Months Ended

Mar. 31, 2017

Business Segments, Significant Customer and Geographic Information

Business Segments, Significant Customer and Geographic Information

13. Business Segments, Significant Customer and Geographic Information

Business Segments

        We currently operate in three reportable segments: Roadway Sensors, Transportation Systems, and Agriculture and Weather Analytics (formerly known as Performance Analytics).

        The Roadway Sensors segment provides hardware and software products to multiple segments of the ITS market. These products primarily consist of various vehicle detection and information systemse used for traffic intersection control, communication and roadway traffic data collection applications. These include, among other products, our Vantage, VantageNext, VersiCam, Vantage Vector, SmartCycle, PedTrax, SmartSpan, Pegasus, Velocity, and P-series, products.

        The Transportation Systems segment includes transportation engineering and consulting services, and the development of transportation management and traveler information systems for the ITS industry. As of April 1, 2016, our performance measurement and information management solution, iPeMS, and related traffic analytic consulting services, previously included in Agriculture and Weather segment, were reassigned to the Transportation Systems segment to better align our traffic analytics capabilities, resources and initiatives. Prior segment information has been recast to reflect this change.

        The Agriculture and Weather Analytics segment includes ClearPath Weather, our road-maintenance applications, and ClearAg, our precision agriculture solutions. ClearPath Weather provides winter road maintenance recommendations for state agencies, municipalities and for commercial companies. Our ClearAg platform provides access to a comprehensive database of weather, soil and agronomic information combined with proprietary land-surface modeling and machine learning are essential to making informed agricultural decisions and is delivered through ClearAg solutions, including our ClearAg APIs and components, WeatherPlot mobile application, and ClearAg Insights applications.

        The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1). Certain corporate general and administrative expenses, including general overhead functions such as information systems, accounting, human resources, marketing, compliance costs and certain administrative expenses, as well as interest and amortization of intangible assets, are not allocated to the segments. The reportable segments are each managed separately because they manufacture and distribute distinct products or provide services with different processes. All reported segment revenues are derived from external customers. Our Chief Executive Officer, who is our chief operating decision maker ("CODM"), reviews financial information at the operating segment level. Our CODM does not review assets by segment in his resource allocation, and therefore assets by segment are not disclosed below.

        Selected financial information for our reportable segments for the fiscal years ended March 31, 2017, 2016 and 2015 is as follows:

	Roadway Sensors		Transportation Systems		Agriculture and Weather Analytics			Total
	(In thousands)
Year Ended March 31, 2017
Revenues	$	42,170	$	49,270	$	4,542		$	95,982
Depreciation		180		191		131			502
Loss on impairment of goodwill		—		—		2,168			2,168
Segment income (loss)		9,799		8,482		(9,557	)		8,724
Year Ended March 31, 2016
Revenues	$	40,259	$	34,096	$	3,393		$	77,748
Depreciation		152		175		122			449
Segment income (loss)		8,401		4,170		(6,140	)		6,431
Year Ended March 31, 2015
Revenues	$	36,370	$	32,832	$	3,049		$	72,251
Depreciation		119		151		106			376
Segment income (loss)		6,840		3,620		(2,822	)		7,638

        The following table reconciles total segment income to consolidated income from continuing operations before income taxes:

	Year Ended March 31,
	2017			2016			2015
	(In thousands)
Segment income:
Total income from reportable segments	$	8,724		$	6,431		$	7,638
Unallocated amounts:
Corporate and other expenses		(13,680	)		(9,541	)		(9,277	)
Amortization of intangible assets		(281	)		(360	)		(431	)
Change in fair value of contingent acquisition consideration		—			—			(9	)
Other (expense) income, net		(7	)		2			(20	)
Interest income, net		13			12			6
Loss from continuing operations before income taxes	$	(5,231	)	$	(3,456	)	$	(2,093	)

Significant Customer and Geographic Information

        We currently have, and historically have had, a diverse customer base. For Fiscal 2017, one individual customer represented approximately 22% of our total revenues and no other individual customer represented greater than 10% of our total revenues. For Fiscal 2016, no individual customer represented approximately 10% of our total revenues. For Fiscal 2015, one individual customer represented approximately 10% of our total revenues and no other individual customer represented greater than 10% of our total revenues.

        No individual customer or government agency had a receivable balance at March 31, 2017 or 2016 greater than 10% of our total trade accounts receivable balances as of March 31, 2017 and 2016, respectively.

        The following table sets forth the percentages of our revenues, by geographic region, derived from shipments to, or contract, service and other revenues from, external customers located outside the U.S.:

	Year Ended March 31,
	2017			2016			2015
Canada		1	%		—	%		—	%
Europe		1			—			—
Middle East		—			1			3
		2	%		1	%		3	%

        Substantially all of our long-lived assets are held in the U.S.