Operating Segment Information

6 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

The Company has four reportable segments that are evaluated regularly by its chief decision making group (consisting of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. The chief decision making group evaluates performance based upon stand-alone segment operating income. Since assets by segment are not reported to or used by the Company’s chief decision making group to allocate resources, or to assess performance, total assets by segment are not disclosed.

Operating segment data is as follows:

	Three Months Ended September 30,						Six Months Ended September 30,
	2014			2013			2014			2013
Revenue:
QSI Dental Division	$	4,657		$	4,904		$	8,899		$	10,055
NextGen Division	93,148			84,701			184,861			166,236
Hospital Solutions Division	4,163			4,734			8,341			10,201
RCM Services Division	18,551			16,742			36,312			34,118
Consolidated revenue	$	120,519		$	111,081		$	238,413		$	220,610
Operating income (loss):
QSI Dental Division	$	1,382		$	1,835		$	2,317		$	3,476
NextGen Division	43,646			38,986			87,611			75,615
Hospital Solutions Division	(1,309		)	(1,988		)	(2,434		)	(2,692		)
RCM Services Division	2,732			2,886			4,568			5,908
Corporate and unallocated	(39,192		)	(25,773		)	(77,048		)	(46,808		)
Consolidated operating income	$	7,259		$	15,946		$	15,014		$	35,499

Effective April 1, 2014, the Company refined the measurement of its segment data to better reflect an organizational structure whereby certain expenses managed by functional area leadership are no longer classified within the operating segments but rather as a component of Corporate and unallocated. Such classification is consistent with the disaggregated financial information used by the Company's chief decision making group. The amounts classified as Corporate and unallocated have historically consisted primarily of corporate general and administrative costs and other centrally managed overhead costs, including accounting and finance, human resources, and legal costs, as well as non-recurring acquisition costs and the post-acquisition amortization of certain intangible assets. Currently, as a result of the refinement of its segment data, the Company no longer classifies the costs of the marketing and research and development functional areas and the amortization of capitalized software costs within the operating segments. The Company has retroactively reclassified the prior year operating income in the table above to present all segment information on a comparable basis.

The major components of the Corporate and unallocated amounts are summarized in the table below:

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
Research and development costs	$	16,898	$	7,615	$	33,134	$	13,228
Amortization of capitalized software costs	4,342		2,341		8,833		4,737
Marketing expense	2,882		2,263		6,111		4,430
Other Corporate and overhead costs	15,070		13,554		28,970		24,413
Total Corporate and unallocated	39,192		25,773		77,048		46,808