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The reconciliation
of the operating income (loss) of the Company’s reportable
operating segments to the Company’s income (loss) before income
taxes is as follows:
On October
1, 1999, the Company created four new business groups which
began reporting to the Company’s Chief Operating Decision
Maker: the TransAct Business Group, which is responsible for
delivering on-line transaction processing products; the i.Foundation
Business Group, which is responsible for delivering products
that provide the technological foundation for Internet-based
electronic commerce solutions; the i.Informix Business Group,
which is responsible for delivering Internet-based solutions
for electronic commerce; and the i.Intelligence Business Group,
which is responsible for delivering Internet-based data warehouse
products and solutions. Financial information for the Company’s
TransAct, i.Foundation, i.Informix and i.Intelligence business
groups for 1999 is summarized below (due to the creation of
these business groups in the fourth quarter of 1999, certain
information was not practicable to obtain for current and
prior years):

The
Company’s revenues are derived from licensing its database
servers and related tools and connectivity/gateway software,
and performing services, which include maintenance and consulting/training.
Information as to the Company’s revenues from external customers
for all reportable segments is as follows:
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Financial
data for the Company’s license revenues by product is
not practicable to obtain due to the bundling of software
products and services into the Company’s solutions offerings.
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Information
as to the Company’s operations in different geographical areas
is as follows:

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