To: Claudia Benson who wrote (25 ) 7/2/1998 8:32:00 AM From: ksuave Read Replies (1) | Respond to
Hope Daffy's not the father, Claudia. Congratulations, in any case.Total revenues decreased by 32 percent to $5,945,000 during fiscal 1998, down from $8,750,000 in fiscal 1997. Total revenues were generated primarily from long-term system development contracts, maintenance contracts and U.S. Postal Service site installations. As anticipated, these revenue sources continue to decline during the transition from providing custom system development solutions to the OpenEnterprise suite of products. The decrease was further impacted by lower revenues generated from the U.S. Postal Service "Store of the Future" contract. In May 1997, the Company completed its final installation under the "Store of the Future" program while transitioning to POS ONE installations. Under the POS ONE contract, the Company as a subcontractor to NCR Corp. no longer provides the hardware for U.S. Postal site installations. As a result the revenue generated per site under POS ONE installations is approximately 70% less than comparable "Store of the Future" sites. Additionally, under the POS ONE program the Company is developing point-of-sale software as a subcontractor to NCR Corp. POS ONE will be deployed in three phases. Phase One is expected to generate revenues of approximately $2,200,000 upon roll-out which is expected to commence during the first half of fiscal 1999. Phases Two and Three have not yet been awarded by the USPS. As mentioned in Item 1 above, the changes to the framework of OpenStore have resulted in a delay in its commercial release. The delay of OpenStore significantly impacted the Company's ability to generate revenues from its OpenEnterprise suite of products in fiscal 1998. The Company expects the first live pilot of OpenEnterprise to be successfully implemented during the second quarter of fiscal 1999.
