| 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 |
|
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