Revenues for the fiscal year ended April 1, 2000 were $10.1 million, representing a 11% increase compared to fiscal 1999 revenues. Revenues for the fiscal year ended April 3, 1999 were $9.1 million, representing a 46% decrease compared to fiscal 1998 revenues of $16.9 million. The decrease in revenues in fiscal 1999 was due to the cessation of programs involving two major customers which totaled approximately $8 million of revenues during the Company's 1998 fiscal year. The Company was limited during fiscal 1999 in its ability to replace these revenues with new customers as it was undertaking a major upgrade to its technology software platform which was not completed until the first quarter of fiscal 2000. During fiscal 2000, the Company's revenues began improving in the December and March quarters of fiscal 2000 due to the market acceptance of the new products and increased marketing and selling activities.
OEM revenues were 76% of total revenues in fiscal 2000 compared to 63% in fiscal 1999. The Company maintains key strategic OEM relationships with Motorola, Philips and Scientific-Atlanta. The increase in OEM revenues in fiscal 2000 was due to OEM sales primarily into several large European accounts.
The Company's revenues in fiscal 2000 included two OEM customers who individually contributed 38% and 25% of the total revenues, respectively. In fiscal 1999, these two OEM customers contributed revenues of 29% and 18%, respectively and one domestic customer contributed 15% of revenues. No other customer contributed more than 10% of revenues in either year. As the purchase of the Company's products generally is associated with a customer's capital upgrade or expansion program, contribution levels of individual customers can be subject to wide fluctuations.
Development and software revenues totaled $3.3 million and $4.2 million in fiscal 2000 and 1999, respectively. Development revenues primarily relate to OEM development efforts which are recognized when defined milestones are reached, the timing of which may be different from when the related development expenses were incurred. The related development costs are reported as research and development expense. All software development costs are charged to research and development when incurred. Development spending declined in fiscal 2000 due to the complete transition to more cost effective Indian based resources supplied under the NeST strategic development agreement. |
