Business Segment Information

9 Months Ended

Dec. 31, 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, our road-maintenance application, and ClearAg, our precision agriculture solution. 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. Our ClearAg platform provides access to a comprehensive database of weather, soil and agronomic information essential to making informed agricultural decisions.

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 nine months ended December 31, 2014 and 2013:

	Roadway Sensors		Transportation Systems		iPerform			Total
	(In thousands)
Three Months Ended December 31, 2014
Total revenues	$	8,112	$	7,796	$	1,632		$	17,540
Segment operating income (loss)	1,053		1,381		(1,455		)	979
Three Months Ended December 31, 2013
Total revenues	$	7,348	$	7,505	$	1,695		$	16,548
Segment operating income (loss)	1,336		692		(414		)	1,614
Nine Months Ended December 31, 2014
Total revenues	$	27,328	$	22,745	$	4,133		$	54,206
Segment operating income (loss)	4,972		3,202		(3,344		)	4,830
Nine Months Ended December 31, 2013
Total revenues	$	23,654	$	22,661	$	4,290		$	50,605
Segment operating income (loss)	4,506		2,721		(923		)	6,304

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

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2014			2013			2014			2013
	(In thousands)
Segment operating income:
Total income from reportable segments	$	979		$	1,614		$	4,830		$	6,304
Unallocated amounts:
Corporate and other expenses	(1,469		)	(1,139		)	(5,488		)	(3,820		)
Amortization of intangible assets	(102		)	(161		)	(341		)	(483		)
Change in fair value of contingent consideration	(1		)	(5		)	(9		)	(21		)
Other expense, net	(8		)	(3		)	(11		)	6
Interest income (expense), net	6			8			2			—
(Loss) income from continuing operations before income taxes	$	(595	)	$	314		$	(1,017	)	$	1,986