Business Segment Information

6 Months Ended

Sep. 30, 2014

Business Segment Information

Business Segment Information

10.Business Segment Information

We operate in three reportable segments: Roadway Sensors, Transportation Systems and iPerform.

The Roadway Sensors segment provides hardware and software products to multiple segments of the ITS market. These various vehicle detection and information systems are used for traffic intersection control, incident detection and roadway traffic data collection applications. These include, among other products, our Vantage, VantageNext, VersiCam, Vantage Vector, SmartCycle, SmartSpan, Velocity, P10, P100 and Abacus 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. During Fiscal 2012 and Fiscal 2013, this segment included the operations of MET, which specializes in 511 advanced traveler information systems and offers predictive weather and ClearPath Weather management tools that allow users to create solutions to meet roadway maintenance decision needs. As of April 1, 2013, the predictive weather and ClearPath Weather services were reassigned to the iPerform segment to better align our predictive weather and traffic capabilities, resources and initiatives.

The iPerform segment includes our performance measurement and information management solution iPeMS, a specialized transportation performance measurement and traffic analytics solution, as well as Clearpath Weather and ClearPath Agriculture (also known as ClearPath Ag) solutions and operations reassigned from Transportation Systems segment on April 1, 2013. iPeMS provides big data and software analytics solutions that help determine current and future traffic patterns, permitting the effective performance analysis and management of traffic infrastructure resources. This information can then be analyzed by traffic professionals to measure how a transportation network is performing and to identify potential areas of improvement. iPeMS is also capable of providing users with predictive traffic analytics and easy-to-use visualization and animation features based on historical traffic conditions.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies (Note 1). Certain corporate expenses, including 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.

The following table sets forth selected unaudited consolidated financial information for our reportable segments for the three and six months ended September 30, 2014 and 2013:

	Roadway Sensors		Transportation Systems		iPerform			Total
	(In thousands)
Three Months Ended September 30, 2014
Total revenues	$	10,196	$	7,284	$	1,070		$	18,550
Segment operating income (loss)	2,123		965		(1,195		)	1,893
Three Months Ended September 30, 2013
Total revenues	$	8,777	$	6,898	$	1,352		$	17,027
Segment operating income (loss)	1,956		743		(263		)	2,436
Six Months Ended September 30, 2014
Total revenues	$	19,216	$	14,949	$	2,501		$	36,666
Segment operating income (loss)	3,920		1,819		(1,889		)	3,850
Six Months Ended September 30, 2013
Total revenues	$	16,306	$	15,156	$	2,595		$	34,057
Segment operating income (loss)	3,170		2,029		(509		)	4,690

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

	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
	(In thousands)
Segment operating income:
Total income from reportable segments	$	1,893		$	2,436		$	3,850		$	4,690
Unallocated amounts:
Corporate and other expenses	(2,089		)	(1,264		)	(4,018		)	(2,681		)
Amortization of intangible assets	(120		)	(161		)	(239		)	(322		)
Change in fair value of contingent consideration	(4		)	(9		)	(8		)	(16		)
Other expense, net	—			12			(3		)	9
Interest income (expense), net	(5		)	(4		)	(4		)	(8		)
(Loss) income from continuing operations before income taxes	$	(325	)	$	1,010		$	(422	)	$	1,672