SEGMENT INFORMATION:

6 Months Ended

Sep. 30, 2016

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.

Revenues and cost of revenue are generally directly attributed to the segments. Certain revenue contracts are allocated among the segments based on the relative value of the underlying products and services. Cost of revenue, excluding non-cash stock compensation expense and purchased intangible asset amortization, is directly charged in most cases and allocated in certain cases based upon proportional usage. 

Operating expenses, excluding non-cash stock compensation expense and purchased intangible asset amortization, are attributed to the segment groups as follows:

· Research and development expenses are primarily directly recorded to each segment group based on identified products supported. 

· Sales and marketing expenses are primarily directly recorded to each segment group based on products supported and sold.  

· General and administrative expenses are generally not allocated to the segments. 

· Gains, losses and other items, net are not allocated to the segment groups.

We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment.

The following table presents information by business segment (dollars in thousands):

	For the quarter ended				For the six months ended
	September 30,				September 30,
	2016		2015		2016		2015
Revenues:
Marketing Services	$	105,679	$	112,979	$	215,394	$	220,705
Audience Solutions		78,526		72,122		152,270		140,672
Connectivity		33,062		22,244		64,404		42,863
Total segment revenues	$	217,267	$	207,345	$	432,068	$	404,240
Gross profit(1):
Marketing Services	$	34,480	$	37,545	$	71,946	$	73,579
Audience Solutions		47,998		39,170		89,910		75,994
Connectivity		19,843		13,499		37,418		25,452
Total segment gross profit	$	102,321	$	90,214	$	199,274	$	175,025
Income (loss) from operations(1):
Marketing Services	$	19,837	$	17,908	$	39,982	$	34,761
Audience Solutions		29,972		25,190		55,068		49,277
Connectivity		1,663		(1,068)		1,954		(1,859)
Total segment income from operations	$	51,472	$	42,030	$	97,004	$	82,179

⁽¹⁾ Gross profit and Income (loss) from operations reflect only the direct and allocable controllable costs of each segment and do not include allocations of corporate expenses (primarily general and administrative expenses) and gains, losses, and other items, net. Additionally, Gross profit and Income (loss) from operations do not reflect non-cash stock compensation expense and purchased intangible asset amortization.

The following table reconciles total operating segment gross profit to gross profit and total operating segment income from operations to income (loss) from operations:

	For the quarter ended				For the six months ended
	September 30,				September 30,
	2016		2015		2016		2015
Total segment gross profit	$	102,321	$	90,214	$	199,274	$	175,025
Less:
Purchased intangible asset amortization		3,890		3,754		7,967		7,508
Non-cash stock compensation		1,269		349		2,163		778
Accelerated amortization		—		78		—		1,520
Gross profit	$	97,162	$	86,033	$	189,144	$	165,219
Total segment income from operations	$	51,472	$	42,030	$	97,004	$	82,179
Less:
Corporate expenses (principally general and administrative)		26,769		23,563		51,158		49,041
Separation and transformation costs included in general and administrative		1,455		6,098		1,455		9,512
Gains, losses and other items, net		300		2,504		614		3,311
Impairment of goodwill and other		—		729		—		729
Purchased intangible asset amortization		3,890		3,754		7,967		7,508
Non-cash stock compensation		11,938		7,360		20,528		15,483
Accelerated amortization		—		78		—		1,520
Income (loss) from operations	$	7,120	$	(2,056)	$	15,282	$	(4,925)