Well, to cite the last quarterly report:
"Revenue from software product sales totalled $2.8 million, or 24% of our total software license revenue for the three months ended June 30, 2004. Software product sales revenue decreased $4.1 million, or 59%, for the three months ended June 30, 2004 as compared to the three months ended June 30, 2003. Revenue from software product sales totalled $6.3 million, or 26% of our total software license revenue for the six months ended June 30, 2004. Software product sales revenue decreased $10.0 million, or 61%, for the six months ended June 30, 2004 as compared to the six months ended June 30, 2003. The decrease in revenue from software products sales in the 2004 period as compared to the comparable period in 2003 resulted from a decline in sales arising from deal execution challenges, reduction in sales and marketing capacity, increased competition and related pricing pressures and an increasing number of transactions sold with development services that will be recognized as development services revenue in future periods. Our recent financial performance, negative cash flow, the 2003 restatement of our consolidated financial statements, the related SEC investigation and securities class action lawsuits and the de-listing of our common stock from The NASDAQ National Market have led our customers and prospects to voice concerns about our continued financial viability, which has continued to contribute to our revenue decline. Despite our efforts to generate demand and develop growth, our success has been limited, and there can be no assurance that our business will stabilize or that we will be able to develop revenue growth from software product sales."
Michael |
