SEGMENT INFORMATION:

9 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION:

SEGMENT INFORMATION:

9.             SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.  We regularly review our segments and the approach used by management to evaluate performance and allocate resources.  During the current quarter ending December 31, 2011, the Company realigned its business segments to better reflect the way management assesses the business.  The Company’s new business segments consist of Marketing and Data Services, IT Infrastructure Management, and Other Services.  The Marketing and Data Services segment includes the Company’s global lines of business for Customer Data Integration (CDI), Consumer Insight Solutions, Marketing Management Services, and Consulting and Agency Services.  The IT Infrastructure Management segment develops and delivers IT outsourcing and transformational solutions.  The Other Services segment includes the e-mail fulfillment business, the US risk business, and the UK fulfillment business.

Our chief operating decision maker uses the revenues and earnings of the three operating segments, among other factors, for performance evaluation and resource allocation.  The Company evaluates performance of the segments based on segment operating income.  The Company’s calculation of segment operating income does not include inter-company transactions and allocates all corporate expenses, excluding those reported as impairments or gains, losses and other items.  Because segment operating income excludes certain impairments and gains, losses and other items this measure is considered a non-GAAP financial measure, which is not a financial measure calculated in accordance with generally accepted accounting principles.  Management believes segment operating income is a helpful measure in evaluating performance of the business segments.  While management considers segment operating income to be a helpful measure of comparative operating performance, this measure should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP presented elsewhere in the financial statements.  In addition, the Company’s calculation of segment operating income may be different from measures used by other companies and therefore comparability may be affected.

The following tables present information by business segment (dollars in thousands):

	For the quarter ended December 31					For the nine months ended December 31
	2011			2010		2011			2010
Revenue:
Marketing and data services	$	187,822		$	188,663	$	568,824		$	543,200
IT Infrastructure management	77,173			78,994		223,935			227,881
Other services	15,898			20,248		50,610			55,448
Total revenue	$	280,893		$	287,905	$	843,369		$	826,529
Income (loss) from operations:
Marketing and data services	$	21,819		$	21,361	$	66,418		$	58,085
IT Infrastructure management	9,795			8,588		19,133			18,973
Other services	(964		)	253		(4,437		)	(1,199		)
Corporate	(15,132		)	3,640		(17,841		)	3,619
Income from operations	$	15,518		$	33,842	$	63,273		$	79,478