XML 36 R25.htm IDEA: XBRL DOCUMENT v3.21.1
Business Segments and International Operations
3 Months Ended
Feb. 28, 2021
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 our Chief Executive Officer.

We operate as three distinct business segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment.

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 margin from our reportable segments and reconciles to our consolidated income from continuing operations before income taxes:
Three Months Ended
(In thousands)February 28, 2021February 29, 2020
Segment revenue:
OpenEdge$84,603 $77,079 
Data Connectivity and Integration5,528 13,685 
Application Development and Deployment31,149 18,919 
Total revenue121,280 109,683 
Segment costs of revenue and operating expenses:
OpenEdge18,916 19,750 
Data Connectivity and Integration1,170 2,680 
Application Development and Deployment15,410 7,288 
Total costs of revenue and operating expenses35,496 29,718 
Segment contribution margin:
OpenEdge65,687 57,329 
Data Connectivity and Integration4,358 11,005 
Application Development and Deployment15,739 11,631 
Total contribution margin85,784 79,965 
Other unallocated expenses(1)
58,368 49,253 
Income from operations27,416 30,712 
Other expense, net(2,652)(3,397)
Income before income taxes$24,764 $27,315 
(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: certain product development and corporate sales and marketing expenses, customer support, administration, amortization 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, hosting services, and consulting and education. Information relating to revenue from external customers by revenue type is as follows (in thousands):
 
Three Months Ended
(In thousands)February 28, 2021February 29, 2020
Performance obligations transferred at a point in time:
Software licenses$33,317 $30,629 
Performance obligations transferred over time:
Maintenance76,977 70,056 
Services10,986 8,998 
Total revenue$121,280 $109,683 

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 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
(In thousands)February 28, 2021February 29, 2020
North America$71,505 $65,413 
EMEA40,240 34,988 
Latin America3,493 4,000 
Asia Pacific6,042 5,282 
Total revenue$121,280 $109,683 

No single customer, partner, or country outside of the U.S. has accounted for more than 10% of our total revenue for the three months ended February 28, 2021 and February 29, 2020. As of February 28, 2021 and November 30, 2020, no individual customer accounted for 10% or more of our net accounts receivable balance. As of February 28, 2021 and November 30, 2020, no individual foreign country accounted for 10% or more of total consolidated assets.