Business Segments Information

3 Months Ended

Jun. 30, 2016

Business Segment Information

Business Segment Information

10.Business Segment Information

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 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, Pegasus, 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. 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 reclassified 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 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 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.

The following table sets forth selected unaudited consolidated financial information for our reportable segments for the three months ended June 30, 2016 and 2015:

	Roadway  Sensors		Transportation  Systems		Agriculture  and Weather  Analytics			Total
	(In thousands)
Three Months Ended June 30, 2016
Revenues	$	10,604	$	12,401	$	922		$	23,927
Segment income (loss)	2,309		2,346		(1,614		)	3,041
Three Months Ended June 30, 2015
Revenues	$	9,905	$	7,794	$	666		$	18,365
Segment income (loss)	2,740		851		(1,308		)	2,283

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

	Three Months Ended
	June 30,
	2016			2015
	(In thousands)
Segment income:
Total income from reportable segments	$	3,041		$	2,283
Unallocated amounts:
Corporate and other expenses	(3,047		)	(2,637		)
Amortization of intangible assets	(84		)	(92		)
Change in fair value of contingent acquisition consideration	—			—
Other (expense) income, net	(4		)	—
Interest income, net	1			4
Loss from continuing operations before income taxes	$	(93	)	$	(442	)