SEGMENT INFORMATION:

6 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION:

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 unless directly attributable.

• 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 three months ended				For the six months ended
	September 30,				September 30,
	2017		2016		2017		2016
Revenues:
Marketing Services	$	94,042	$	105,679	$	185,636	$	215,394
Audience Solutions	78,814		78,526		154,548		152,270
Connectivity	52,384		33,062		97,570		64,404
Total segment revenues	$	225,240	$	217,267	$	437,754	$	432,068
Gross profit(1):
Marketing Services	$	34,320	$	34,480	$	65,678	$	71,946
Audience Solutions	48,321		47,998		95,531		89,910
Connectivity	35,292		19,843		62,817		37,418
Total segment gross profit	$	117,933	$	102,321	$	224,026	$	199,274
Income from operations(1):
Marketing Services	$	21,874	$	19,837	$	41,658	$	39,982
Audience Solutions	29,497		29,972		58,039		55,068
Connectivity	5,715		1,663		5,667		1,954
Total segment income from operations	$	57,086	$	51,472	$	105,364	$	97,004

⁽¹⁾ Gross profit and Income 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, segment Gross profit and Income from operations do not reflect non-cash stock compensation expense and purchased intangible asset amortization.

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

	For the three months ended				For the six months ended
	September 30,				September 30,
	2017		2016		2017			2016
Total segment gross profit	$	117,933	$	102,321	$	224,026		$	199,274
Less:
Purchased intangible asset amortization	6,021		3,890		11,987			7,967
Non-cash stock compensation	1,744		1,269		3,317			2,163
Gross profit	$	110,168	$	97,162	$	208,722		$	189,144
Total segment income from operations	$	57,086	$	51,472	$	105,364		$	97,004
Less:
Corporate expenses (principally general and administrative)	25,753		26,769		51,720			51,158
Separation and transformation costs included in general and administrative	5,442		1,455		12,561			1,455
Gains, losses and other items, net	3,660		300		3,562			614
Purchased intangible asset amortization	6,021		3,890		11,987			7,967
Non-cash stock compensation	15,757		11,938		30,788			20,528
Income (loss) from operations	$	453	$	7,120	$	(5,254	)	$	15,282