Business Segments

9 Months Ended

Dec. 31, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Business Segments

Business Segments

Description of Business Segments

Agilysys has two reportable business segments: HSG and RSG. The reportable segments are each managed separately and are supported by various practices as well as company-wide functional departments. These functional support departments include general accounting and finance, accounts payable, tax, information technology, legal, payroll, and benefits and a portion of these costs are reported in Corporate/Other. Corporate/Other is not a reportable business segment as defined by GAAP. As a result of the sale of the TSG business during fiscal 2012, and the TSA with OnX, Corporate/Other costs have been adjusted for the period presented to remove the portion of the functional support department costs that were transferred to OnX.

Measurement of Segment Operating Results and Segment Assets

We evaluate performance and allocate resources to our reportable segments based on operating income. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies elsewhere in the footnotes to the consolidated financial statements. Intersegment sales are recorded at pre-determined amounts to allow for intercompany profit to be included in the operating results of the individual reportable segments. Such intercompany profit is eliminated for consolidated financial reporting purposes.

For the three and nine months ended December 31, 2012, revenue from one RSG customer represented 20.9% and 11.3% of consolidated net revenue, respectively.

Our Chief Executive Officer, who is the Chief Operating Decision Maker, does not evaluate a measurement of segment assets when evaluating the performance of our reportable segments. As such, information relating to segment assets is not provided in the financial information below.

The following tables present segment profit and related information for each of our reportable segments for the three and nine months endedDecember 31, 2012 and 2011.

	Reportable Segments						Corporate/
(In thousands)	HSG			RSG			Other			Consolidated
Three months ended December 31, 2012
Total revenue:
Products	$	12,251		$	27,959		$	—		$	40,210
Support, maintenance and subscription services	12,461			7,171			—			19,632
Professional services	3,478			4,128			—			7,606
Elimination of intersegment revenue	—			(237		)	—			(237		)
Revenue from external customers	$	28,190		$	39,021		—			$	67,211
Gross profit	$	16,168		$	7,281		$	—		$	23,449
Gross profit margin	57.4		%	18.7		%				34.9		%
Operating income (loss)	$	3,998		$	3,020		$	(6,207	)	$	811
Interest expense, net	—			—			56			56
Other expenses, net	—			—			220			220
Income (loss) before income taxes	$	3,998		$	3,020		$	(6,483	)	$	535
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	665		$	150		$	650		$	1,465
Restructuring, severance and other charges	$	6		$	—		$	(37	)	$	(31	)
Three Months Ended December 31, 2011
Total revenue:
Products	$	6,618		$	19,107		$	—		$	25,725
Support, maintenance and subscription services	12,243			6,257			—			18,500
Professional services	2,819			4,763			—			7,582
Elimination of intersegment revenue	—			(225		)	—			(225		)
Revenue from external customers	$	21,680		$	29,902		—			$	51,582
Gross profit	$	13,957		$	5,976		$	—		$	19,933
Gross profit margin	64.4		%	20.0		%				38.6		%
Operating income (loss)	$	1,864		$	1,439		$	(10,352	)	$	(7,049	)
Interest expense, net	—			—			56			56
Other expenses, net	—			—			22			22
Income (loss) before income taxes	$	1,864		$	1,439		$	(10,430	)	$	(7,127	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	693		$	153		$	1,131		$	1,977
Restructuring, severance and other charges	$	11		$	16		$	4,529		$	4,556

	Reportable Segments						Corporate/
(In thousands)	HSG			RSG			Other			Consolidated
Nine Months Ended December 31, 2012
Total revenue:
Products	$	26,087		$	63,175		$	—		$	89,262
Support, maintenance and subscription services	37,817			20,237			—			58,054
Professional services	10,907			15,622			—			26,529
Elimination of intersegment revenue	(30		)	(712		)	—			(742		)
Revenue from external customers	$	74,781		$	98,322		$	—		$	173,103
Gross profit	$	46,690		$	19,218		$	—		$	65,908
Gross profit margin	62.4		%	19.5		%				38.1		%
Operating income (loss)	$	10,254		$	6,862		$	(18,394	)	$	(1,278	)
Interest expense, net	—			—			217			217
Other expenses, net	—			—			202			202
Income (loss) before income taxes	$	10,254		$	6,862		$	(18,813	)	$	(1,697	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	1,989		$	461		$	2,128		$	4,578
Asset impairments and related charges	$	208		—			—			$	208
Restructuring, severance and other charges	$	921		—			$	603		$	1,524
Nine Months Ended December 31, 2011
Total revenue:
Products	$	18,399		$	61,988		$	—		$	80,387
Support, maintenance and subscription services	35,291			19,033			—			54,324
Professional services	9,800			12,967			—			22,767
Elimination of intersegment revenue	—			(620		)	—			(620		)
Revenue from external customers	$	63,490		$	93,368		$	—		$	156,858
Gross profit	$	40,187		$	18,833		$	—		$	59,020
Gross profit margin	63.3		%	20.2		%				37.6		%
Operating income (loss)	$	2,075		$	5,169		$	(28,485	)	$	(21,241	)
Interest expense, net	—			—			883			883
Other expenses, net	—			—			293			293
Income (loss) before income taxes	$	2,075		$	5,169		$	(29,661	)	$	(22,417	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	1,931		$	457		$	3,571		$	5,959
Restructuring, severance and other charges	$	817		$	381		$	9,392		$	10,590