Business Segments

9 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

12. Business Segments

Description of Business Segments

The Company 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, tax, and information technology 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 Company's TSG business, and the TSA with OnX, which is disclosed in Note 3, Corporate/Other costs have been adjusted for all prior periods presented to remove the portion of the functional support department costs that were transferred to OnX.

HSG is a leading technology provider of software, hardware and services to the hospitality industry, offering industry leading enterprise solutions for property management, point of sale, inventory and procurement, document management, and mobility-enabled guest engagement. HSG solutions allow customers in the gaming, hotel and resort, cruise line, foodservice management, higher education, and sports and entertainment markets to enhance guest services, increase revenue opportunities, and reduce operational expenses.

RSG is a leader in designing solutions that help make retailers more productive and provide their customers with an enhanced shopping experience. RSG solutions help improve operational efficiency, technology utilization, customer satisfaction, and in-store profitability, including mobility and wireless, customized pricing, inventory, and customer relationship management systems. The group also provides implementation plans and supplies the complete package of hardware needed to operate the systems, including servers, receipt printers, point-of-sale terminals, and wireless devices for in-store use by the retailer's store associates.

Measurement of Segment Operating Results and Segment Assets

The Company's President and Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), evaluates performance and allocates resources to its 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 found in the Company's Annual Report on Form 10-K for the year ended March 31, 2011. Intersegment sales are recorded at pre-determined amounts to allow for inter-company profit to be included in the operating results of the individual reportable segments. Such inter-company profit is eliminated for consolidated financial reporting purposes.

The CODM does not evaluate a measurement of segment assets when evaluating the performance of the Company's reportable segments. As such, financial information relating to segment assets is not provided in the table below.

The following table presents segment profit and related information for each of the Company's reportable segments and Corporate/Other. Please refer to Note 5 to Condensed Consolidated Financial Statements for further information on the fiscal 2012 and fiscal 2011 restructuring charges.

	Reportable segments						Corporate/
	HSG			RSG			Other			Consolidated
Three months ended December 31, 2011
Total sales	$	21,680		$	30,127		$	—		$	51,807
Elimination of intersegment sales		—			(225	)		—			(225	)
Sales from external customers	$	21,680		$	29,902		$	—		$	51,582
Gross margin	$	13,956		$	5,976		$	—		$	19,932
Gross margin percentage		64.4	%		20.0	%					38.6	%
Operating income (loss)	$	1,680		$	1,323		$	(10,052	)	$	(7,049	)
Other expenses, net		—			—			(22	)		(22	)
Interest expense, net		—			—			(56	)		(56	)
Income (loss) from continuing operations before income taxes	$	1,680		$	1,323		$	(10,130	)	$	(7,127	)
Three months ended December 31, 2010
Total sales	$	24,666		$	34,458		$	—		$	59,124
Elimination of intersegment sales		(3	)		(124	)		—			(127	)
Sales from external customers	$	24,663		$	34,334		$	—		$	58,997
Gross margin	$	13,346		$	5,795		$	—		$	19,141
Gross margin percentage		54.1	%		16.9	%					32.4	%
Operating income (loss)	$	1,955		$	1,042		$	(8,260	)	$	(5,263	)
Other income, net		—			—			321			321
Interest expense, net		—			—			(295	)		(295	)
Income (loss) from continuing operations before income taxes	$	1,955		$	1,042		$	(8,234	)	$	(5,237	)
Nine months ended December 31, 2011
Total sales	$	63,491		$	93,987		$	—		$	157,478
Elimination of intersegment sales		—			(620	)		—			(620	)
Sales from external customers	$	63,491		$	93,367		$	—		$	156,858
Gross margin	$	40,187		$	18,833		$	—		$	59,020
Gross margin percentage		63.3	%		20.2	%					37.6	%
Operating income (loss)	$	2,036		$	5,090		$	(28,367	)	$	(21,241	)
Other expenses, net		—			—			(293	)		(293	)
Interest expense, net		—			—			(883	)		(883	)
Income (loss) from continuing operations before income taxes	$	2,036		$	5,090		$	(29,543	)	$	(22,417	)
Nine months ended December 31, 2010
Total sales	$	68,964		$	87,132		$	—		$	156,096
Elimination of intersegment sales		(66	)		(305	)		—			(371	)
Sales from external customers	$	68,898		$	86,827		$	—		$	155,725
Gross margin	$	38,848		$	17,013		$	—		$	55,861
Gross margin percentage		56.4	%		19.6	%					35.9	%
Operating income (loss)	$	4,408		$	3,889		$	(24,752	)	$	(16,455	)
Other income, net		—			—			2,281			2,281
Interest expense, net		—			—			(819	)		(819	)
Income (loss) from continuing operations before income taxes	$	4,408		$	3,889		$	(23,290	)	$	(14,993	)