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 nine months ended
	December 31,				December 31,
	2017		2016		2017		2016
Revenues:
Marketing Services	$	94,457	$	101,177	$	280,093	$	316,571
Audience Solutions	84,436		83,399		238,984		235,669
Connectivity	55,978		38,736		153,548		103,140
Total segment revenues	$	234,871	$	223,312	$	672,625	$	655,380

Gross profit⁽¹⁾:
Marketing Services	$	35,798	$	37,494	$	101,476	$	109,440
Audience Solutions	52,821		53,120		148,352		143,030
Connectivity	37,914		23,091		100,730		60,509
Total segment gross profit	$	126,533	$	113,705	$	350,558	$	312,979

Income from operations⁽¹⁾:
Marketing Services	$	22,063	$	21,127	$	63,721	$	61,109
Audience Solutions	33,112		34,572		91,151		89,640
Connectivity	6,808		1,877		12,475		3,831
Total segment income from operations	$	61,983	$	57,576	$	167,347	$	154,580

⁽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 include 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 from operations (dollars in thousands):



	For the three months ended					For the nine months ended
	December 31,					December 31,
	2017			2016		2017		2016
Total segment gross profit	$	126,533		$	113,705	$	350,558	$	312,979

Less:
Purchased intangible asset amortization	5,971			4,621		17,958		12,588
Non-cash stock compensation	1,611			2,240		4,927		4,403
Gross profit	$	118,951		$	106,844	$	327,673	$	295,988

Total segment income from operations	$	61,983		$	57,576	$	167,347	$	154,580

Less:
Corporate expenses (principally general and administrative)	23,862			24,184		75,582		75,342
Separation and transformation costs included in general and administrative	5,214			4,118		17,775		5,573
Gains, losses and other items, net	(41		)	2,111		3,521		2,725
Purchased intangible asset amortization	5,971			4,621		17,958		12,588
Non-cash stock compensation	15,919			13,427		46,707		33,955
Income from operations	$	11,058		$	9,115	$	5,804	$	24,397