Business Segments

3 Months Ended

Mar. 31, 2015

Business Segments

Business Segments

Note L — Business Segments

We conduct our operations by organizing into two distinct operating divisions: Customer Interaction and Trillium Software. In accordance with ASC 280, Segment Reporting, we report the two operating divisions as two reportable segments — Customer Interaction and Trillium Software.  Our reportable segments are described below.

Customer Interaction

Our Customer Interaction services offer a wide variety of integrated, multi-channel, data-driven marketing service solutions for our customers. We derive revenues by offering a full complement of capabilities and resources to provide these services in media from direct mail to email, including:

· agency and digital services;

· database marketing solutions and business-to-business lead generation;

· direct mail; and

· contact centers.

Customer Interaction’s largest cost components are labor, outsourced costs and mail supply chain costs.

Trillium Software

Trillium Software is a leading enterprise data quality solutions provider.  Our full complement of technologies and services include global data profiling, data cleansing, enrichment, and data linking for e-business, customer relationship management, data governance, enterprise resource planning, supply chain management, data warehouse, and other enterprise applications. Revenues from the Trillium Software segment are comprised primarily of software, maintenance and professional services.

Trillium Software’s largest cost component is software development, which is comprised primarily of labor.

Corporate expense consists primarily of pension and worker’s compensation expense related to employees from operations we no longer own.

Information about the operations of our two business segments is as follows:

	Three Months Ended March 31,
In thousands	2015			2014
Operating revenues
Customer Interaction	$	109,315		$	118,734
Trillium Software	11,858			13,993
Total operating revenues	$	121,173		$	132,727
Operating income
Customer Interaction	$	1,527		$	1,950
Trillium Software	3,013			3,595
Corporate	(1,525		)	(966		)
Total operating income	$	3,015		$	4,579