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Segment And Related Information
 6 Months Ended
Jun. 30, 2011
Segment And Related Information  
Segment And Related Information

(8) Segment and Related Information

We are a major provider of integrated information management solutions and services for the public sector, with a focus on local
governments.

We provide our software systems and services and appraisal services through four business units which focus on the
following products:

  • financial management and education software solutions;
  • financial management, municipal courts, and land and vital records software solutions;
  • courts and justice software solutions; and
  • appraisal and tax software solutions and property appraisal services.

In accordance with ASC 280-10, Segment Reporting, the financial management and education software solutions unit, financial
management, municipal courts and land and vital records software solutions unit and the courts and justice software solutions unit
meet the criteria for aggregation and are presented in one segment, Enterprise Software Solutions ("ESS"). The ESS segment
provides municipal and county governments and schools with software systems to meet their information technology and
automation needs for mission-critical "back-office" functions such as financial management and courts and justice processes. The
Appraisal and Tax Software Solutions and Services ("ATSS") segment provides systems and software that automate the appraisal
and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing
authorities. Property appraisal outsourcing services include: the physical inspection of commercial and residential properties; data
collection and processing; computer analysis for property valuation; preparation of tax rolls; community education; and arbitration
between taxpayers and the assessing jurisdiction.

We evaluate performance based on several factors, of which the primary financial measure is business segment operating income.
We define segment operating income as income before noncash amortization of intangible assets associated with their acquisition,
share-based compensation expense, interest expense and income taxes. Segment operating income includes intercompany
transactions. The majority of intercompany transactions relate to contracts involving more than one unit and are valued based on
the contractual arrangement. Segment operating income for corporate primarily consists of compensation costs for the executive
management team and certain accounting and administrative staff and share-based compensation expense for the entire company. 

For the three months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

ESS

 

ATSS

 

Corporate

 

 

Totals

Revenues

 

 

 

 

 

 

 

 

 

Software licenses

$

7,562

$

746

$

-

 

$

8,308

Subscriptions

 

7,089

 

188

 

-

 

 

7,277

Software services

 

15,625

 

2,367

 

-

 

 

17,992

Maintenance

 

31,315

 

3,741

 

-

 

 

35,056

Appraisal services

 

-

 

5,987

 

-

 

 

5,987

Hardware and other

 

1,018

 

-

 

1,097

 

 

2,115

Intercompany

 

463

 

-

 

(463

)

 

-

Total revenues

$

63,072

$

13,029

$

634

 

$

76,735

Segment operating income

$

12,420

$

2,407

$

(3,947

)

$

10,880

 

For the six months ended June 30, 2011

 

 

 

 

 

 

 

 

 

 

 

ESS

 

ATSS

 

Corporate

 

 

Totals

Revenues

 

 

 

 

 

 

 

 

 

Software licenses

$

13,849

$

1,281

$

-

 

$

15,130

Subscriptions

 

13,926

 

315

 

-

 

 

14,241

Software services

 

29,888

 

4,868

 

-

 

 

34,756

Maintenance

 

62,947

 

7,621

 

-

 

 

70,568

Appraisal services

 

-

 

12,184

 

-

 

 

12,184

Hardware and other

 

2,152

 

-

 

1,097

 

 

3,249

Intercompany

 

870

 

-

 

(870

)

 

-

Total revenues

$

123,632

$

26,269

$

227

 

$

150,128

Segment operating income

$

24,768

$

5,042

$

(7,849

)

$

21,961

 

For the three months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

ESS

 

ATSS

 

Corporate

 

 

Totals

Revenues

 

 

 

 

 

 

 

 

 

Software licenses

$

8,246

$

489

$

-

 

$

8,735

Subscriptions

 

5,723

 

84

 

-

 

 

5,807

Software services………………………………………15,859

 

2,647

 

-

 

 

18,506

Maintenance

 

29,506

 

3,706

 

-

 

 

33,212

Appraisal services

 

-

 

4,925

 

-

 

 

4,925

Hardware and other

 

1,280

 

-

 

135

 

 

1,415

Intercompany

 

461

 

-

 

(461

)

 

-

Total revenues

$

61,075

$

11,851

$

(326

)

$

72,600

Segment operating income

$

13,260

$

1,954

$

(3,524

)

$

11,690

 

For the six months ended June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

ESS

 

ATSS

 

Corporate

 

 

Totals

Revenues

 

 

 

 

 

 

 

 

 

Software licenses

$

16,168

$

1,016

$

-

 

$

17,184

Subscriptions

 

10,897

 

163

 

-

 

 

11,060

Software services………………………………………30,414

 

5,148

 

-

 

 

35,562

Maintenance

 

59,215

 

7,413

 

-

 

 

66,628

Appraisal services

 

-

 

9,200

 

-

 

 

9,200

Hardware and other

 

2,644

 

7

 

135

 

 

2,786

Intercompany

 

786

 

-

 

(786

)

 

-

Total revenues

$

120,124

$

22,947

$

(651

)

$

142,420

Segment operating income

$

24,522

$

3,747

$

(7,239

)

$

21,030

 

Reconciliation of reportable segment operating

 

For the three months ended June 30,

 

 

For the six months ended June 30,

 

income to the Company's consolidated totals:

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

Total segment operating income

$

10,880

 

$

11,690

 

$

21,961

 

$

21,030

 

Amortization of acquired software

 

(244

)

 

(398

)

 

(539

)

 

(796

)

Amortization of customer and trade name intangibles

 

(803

)

 

(807

)

 

(1,607

)

 

(1,613

)

Other expense, net

 

(524

)

 

(102

)

 

(1,024

)

 

(144

)

Income before income taxes

$

9,309

 

$

10,383

 

$

18,791

 

$

18,477