Business Segments

3 Months Ended

Jun. 30, 2012

Business Segments [Abstract]

Business Segments

11. 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.

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 three months years ended June 30, 2012 and 2011.

(In thousands)	Reportable Segments						Corporate/ Other
	HSG			RSG						Consolidated
Three Months Ended June 30, 2012
Total revenue:
Products	$	6,555		$	17,563		$	—		$	24,118
Support, maintenance and subscription services		12,393			6,267			—			18,660
Professional services		3,441			5,682			—			9,123
Elimination of intersegment revenue		(31	)		(224	)		—			(255	)
Revenue from external customers	$	22,358		$	29,288		$	—		$	51,646
Gross profit	$	14,665		$	5,713		$	—		$	20,378
Gross profit margin		65.6	%		19.5	%					39.5	%
Operating income (loss)	$	3,044		$	1,718		$	(6,312	)	$	(1,550	)
Interest expense, net		—			—			147			147
Other expense, net		—			—			143			143
Income (loss) from continuing operations before income taxes	$	3,044		$	1,718		$	(6,602	)	$	(1,840	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	664		$	140		$	776		$	1,580
Asset impairments and related charges	$	208		$	—		$	—		$	208
Restructuring and related charges	$	593		$	—		$	532		$	1,125
Three Months Ended June 30, 2011
Total revenue:
Products	$	4,546		$	23,408		$	—		$	27,954
Support, maintenance and subscription services		11,637			6,067			—			17,704
Professional services		3,351			3,761			—			7,112
Elimination of intersegment revenue		—			(179	)		—			(179	)
Revenue from external customers	$	19,534		$	33,057		$	—		$	52,591
Gross profit	$	11,997		$	6,091		$	—		$	18,088
Gross profit margin		61.4	%		18.4	%					34.4	%
Operating (loss) income	$	(978	)	$	1,809		$	(9,193	)	$	(8,362	)
Interest expense, net		—			—			305			305
Other income, net		—			—			(37	)		(37	)
(Loss) income from continuing operations before income taxes	$	(978	)	$	1,809		$	(9,461	)	$	(8,630	)
Other charges:
Depreciation of fixed assets and amortization of intangibles	$	589		$	150		$	1,204		$	1,943
Restructuring and related charges	$	187		$	134		$	2,025		$	2,346