Business Segments and International Operations

9 Months Ended

Aug. 31, 2016

Segment Reporting [Abstract]

Business Segments and International Operations

Business Segments and International Operations

Operating segments are components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is the combination of our Chief Executive Officer and Chief Operating Officer.

We do not manage our assets or capital expenditures by segment or assign other income (expense) and income taxes to segments. We manage and report such items on a consolidated company basis.

The following table provides revenue and contribution from our reportable segments and reconciles to the consolidated income (loss) before income taxes:

	Three Months Ended						Nine Months Ended
(In thousands)	August 31, 2016			August 31, 2015			August 31, 2016			August 31, 2015
Segment revenue:
OpenEdge	$	67,534		$	73,398		$	198,595		$	214,775
Data Connectivity and Integration	14,251			8,281			30,852			22,669
Application Development and Deployment	20,233			12,958			58,170			27,392
Total revenue	102,018			94,637			287,617			264,836
Segment costs of revenue and operating expenses:
OpenEdge	18,180			18,550			53,539			56,529
Data Connectivity and Integration	2,828			3,180			8,863			9,563
Application Development and Deployment	11,021			9,933			29,555			30,169
Total costs of revenue and operating expenses	32,029			31,663			91,957			96,261
Segment contribution:
OpenEdge	49,354			54,848			145,056			158,246
Data Connectivity and Integration	11,423			5,101			21,989			13,106
Application Development and Deployment	9,212			3,025			28,615			(2,777		)
Total contribution	69,989			62,974			195,660			168,575
Other unallocated expenses (1)	56,383			54,380			163,005			173,903
Income (loss) from operations	13,606			8,594			32,655			(5,328		)
Other (expense) income, net	(1,288		)	(1,165		)	(4,474		)	(1,258		)
Income (loss) before income taxes	$	12,318		$	7,429		$	28,181		$	(6,586	)
(1) The following expenses are not allocated to our segments as we manage and report our business in these functional areas on a consolidated basis only: product development, corporate marketing, administration, amortization and impairment of acquired intangibles, stock-based compensation, restructuring, and acquisition related expenses.

Our revenues are derived from licensing our products, and from related services, which consist of maintenance and consulting and education. Information relating to revenue from customers by revenue type is as follows (in thousands):

	Three Months Ended				Nine Months Ended
(In thousands)	August 31, 2016		August 31, 2015		August 31, 2016		August 31, 2015
Software licenses	$	33,624	$	31,840	$	86,366	$	85,794
Maintenance	60,368		55,365		178,189		157,259
Professional services	8,026		7,432		23,062		21,783
Total	$	102,018	$	94,637	$	287,617	$	264,836

In the following table, revenue attributed to North America includes sales to customers in the U.S. and sales to certain multinational organizations. Revenue from Europe, the Middle East and Africa (EMEA), Latin America and the Asia Pacific region includes sales to customers in each region plus sales from the U.S. to distributors in these regions. Information relating to revenue from external customers from different geographical areas is as follows (in thousands):

	Three Months Ended				Nine Months Ended
(In thousands)	August 31, 2016		August 31, 2015		August 31, 2016		August 31, 2015
North America	$	58,275	$	49,810	$	160,732	$	139,454
EMEA	32,719		30,656		95,517		89,667
Latin America	4,667		4,621		12,749		13,977
Asia Pacific	6,357		9,550		18,619		21,738
Total	$	102,018	$	94,637	$	287,617	$	264,836