Business Segments

12 Months Ended

Mar. 31, 2012

Business Segments [Abstract]

BUSINESS SEGMENTS

16.

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, and the TSA with OnX, 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.

Beginning in the first quarter of fiscal 2011, we allocated certain general and administrative costs related to the accounts payable, legal, payroll, and benefits functional departments to the reportable business segments in order to provide a better reflection of the costs needed to operate the business segments. Prior period results have been adjusted to conform to the current period reporting presentation.

HSG develops, markets and sells property and lodging management, point-of-sale, and inventory and procurement applications to operate hotel, casino, destination resort, cruise line and foodservice management establishments in the hospitality industry. HSG offers solutions that provide comprehensive control of the customer’s property operations — from reservations, check in, point-of-sale and other guest-engagement activities to inventory and procurement management and document management.

RSG provides proprietary business consulting, implementation and hardware maintenance and support services. Extensive experience in all phases of wireless infrastructure and integration with legacy systems enables RSG customers to capture the promise of today’s mobile technology. RSG mobile solutions extend the customer’s operations to portable devices, increasing customer satisfaction and productivity with integrated software that reduces security exposure. In addition, RSG also sells POS and mobile POS (MPOS) solutions to facilitate the check-out process as well as other self-service capabilities.

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.

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 table presents segment profit and related information for each of our reportable segments for the fiscal years ended March 31, 2012, 2011 and 2010.

	Reportable Segments
	HSG			RSG			Corporate/Other			Consolidated
Fiscal Year Ended March 31, 2012
Total revenue:
Products	$	25,148		$	79,993		$	—		$	105,141
Support, maintenance and subscription services		48,072			25,938			—			74,010
Professional services		13,155			17,422			—			30,577
Elimination of intersegment revenue		—			(839	)		—			(839	)
	$	86,375		$	122,514		$	—		$	208,889
Gross profit	$	55,354		$	24,482		$	—		$	79,836
Gross profit margin		64.1%			20.0%						38.2%
Operating (loss) income	$	(6,552	)	$	5,481		$	(40,119	)	$	(41,190	)
Interest expense, net		—			—			(875	)		(875	)
Other expense, net		—			—			(181	)		(181	)
(Loss) Income from continuing operations before income taxes	$	(6,552	)	$	5,481		$	(41,175	)	$	(42,246	)
Other charges:
Depreciation and amortization	$	2,766		$	728		$	4,794		$	8,288
Asset impairments and related charges	$	9,681		$	—		$	—		$	9,681
Restructuring and related charges	$	2,289		$	606		$	12,958		$	15,853
Fiscal Year Ended March 31, 2011
Total revenue:
Products	$	35,306		$	69,463		$	—		$	104,769
Support, maintenance and subscription services		45,053			26,146			—			71,199
Professional services		13,742			13,539			—			27,281
Elimination of intersegment revenue		(92	)		(476	)		—			(568	)
Revenue from external customers	$	94,009		$	108,672		$	—		$	202,681
Gross profit	$	54,669		$	20,970		$	—		$	75,639
Gross profit margin		58.2%			19.3%						37.3%
Operating income (loss)	$	5,836		$	3,164		$	(30,625	)	$	(21,625	)
Interest expense, net		—			—			(1,224	)		(1,224	)
Other income, net		—			—			2,294			2,294
Income (loss) from continuing operations before income taxes	$	5,836		$	3,164		$	(29,555	)	$	(20,555	)
Other charges:
Depreciation and amortization	$	2,605		$	445		$	5,986		$	9,036
Asset impairments and related charges	$	959		$	—		$	—		$	959
Restructuring charges	$	—		$	—		$	405		$	405
Fiscal Year Ended March 31, 2010
Total revenue:
Products	$	31,283		$	72,218		$	—		$	103,501
Support, maintenance and subscription services		39,021			24,289			—			63,310
Professional services		13,057			13,999			—			27,056
Elimination of intersegment revenue		(206	)		(155	)		—			(361	)
Revenue from external customers	$	83,155		$	110,351		$	—		$	193,506
Gross profit	$	51,463		$	23,326		$	(781	)	$	74,008
Gross profit margin		61.9%			21.1%						38.2%
Operating income (loss)	$	7,800		$	5,873		$	(28,553	)	$	(14,880	)
Interest expense, net		—			—			(984	)		(984	)
Other expenses, net		—			—			687			687
Income (loss) from continuing operations before	$	7,800		$	5,873		$	(28,850	)	$	(15,177	)
Other charges:
Depreciation and amortization	$	3,083		$	194		$	4,861		$	8,138
Asset impairments and related charges	$	90		$	—		$	146		$	236
Restructuring charges	$	—		$	—		$	823		$	823

Enterprise-Wide Disclosures

Our assets are primarily located in the United States of America. Further, revenue attributable to our international operations accounted for approximately 5%, 6%, and 5% of total revenue for fiscal 2012, 2011, and 2010, respectively.