Business Segments

6 Months Ended

Jun. 30, 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 FASB 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. Corporate expense consists primarily of pension and workers’ compensation expense related to employees from operations we no longer own.

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.

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

	Three Months Ended June 30,
In thousands	2015			2014
Operating revenues
Customer Interaction	$	109,175		$	127,321
Trillium Software	13,170			12,989
Total operating revenues	$	122,345		$	140,310
Operating income
Customer Interaction	$	5,042		$	9,192
Trillium Software	4,567			2,749
Corporate	(1,552		)	(954		)
Total operating income	$	8,057		$	10,987
Income from operations before income taxes	$	8,057		$	10,987
Interest Expense	1,477			710
Interest Income	(9		)	(81		)
Loss on Sale	9,501			—
Other, Net	1,518			1,075
Total income (loss) from operations before income taxes	$	(4,430	)	$	9,283

	Six Months Ended June 30,
In thousands	2015			2014
Operating revenues
Customer Interaction	$	218,490		$	246,055
Trillium Software	25,028			26,982
Total operating revenues	$	243,518		$	273,037
Operating income
Customer Interaction	$	6,569		$	11,142
Trillium Software	7,580			6,344
Corporate	(3,077		)	(1,920		)
Total operating income	$	11,072		$	15,566
Income from operations before income taxes	$	11,072		$	15,566
Interest Expense	2,124			1,437
Interest Income	(47		)	(129		)
Loss on Sale	9,501			—
Other, Net	1,110			1,809
Total income (loss) from operations before income taxes	$	(1,616	)	$	12,449