EX-99.2(A) 8 dex992a.htm SOFTWARE COSTS Software Costs

Exhibit 99.2 (a)

NDCHealth Corporation
Software Costs
FY02 vs. FY03

 

FY02

 

 

 

 

Q1
Total

 

 

 

Q2
Total

 

 

 

Q3
Total

 

 

 

9 Months
Total

 

 

 

 

 

 


 

 

 


 

 

 


 

 

 


 

Total costs associated with software development

 

 

 

$

4,473

 

 

 

$

4,301

 

 

 

$

4,518

 

 

 

$

13,292

 

Less: capitalization of internally developed software

 

 

 

(2,688

)

 

 

(2,844

)

 

 

(2,961

)

 

 

(8,493

)

 

 

 

 


 

 

 


 

 

 


 

 

 


 

Capitalization as a % of revenue

 

 

 

3.2

%

 

 

3.3

%

 

 

3.3

%

 

 

3.3

%

                                   

Net software development expense

 

 

 

1,785

 

 

 

1,457

 

 

 

1,557

 

 

 

4,799

 

Software maintenance expense

 

 

 

2,966

 

 

 

2,551

 

 

 

2,431

 

 

 

7,948

 

 

 

 

 


 

 

 


 

 

 


 

 

 


 

Total net software expense

 

 

 

 

$

4,751

 

 

 

 

$

4,008

 

 

 

 

$

3,988

 

 

 

 

$

12,747

 

 

 

 

 

 



 

 

 

 



 

 

 

 



 

 

 

 



 


 

FY03

 

 

Q1

 

Q2

 

Q3

 

9 Months

 

 

 

 


 


 


 


 

 

 

Total

 

Base*

 

Total

 

Base*

 

Total

 

Base*

 

Total

 

Base*

 

 

 


 


 


 


 


 


 


 


 

Total costs associated with software development

 

$

8,737

 

$

5,164

 

$

9,222

 

$

5,199

 

$

9,345

 

$

5,375

 

$

27,304

 

$

15,738

 

Less: capitalization of internally developed software

 

(7,119

)

(3,648

)

(7,154

)

(3,561

)

(7,610

)

(3,752

)

(21,883

)

(10,961

)

 

 


 


 


 


 


 


 


 


 

Capitalization as a % of revenue

 

 

 

4.0

%

 

 

3.7

%

 

 

3.7

%

 

 

3.8

%

                                   

Net software development expense

 

1,618

 

1,516

 

2,068

 

1,638

 

1,735

 

1,623

 

5,421

 

4,777

 

Software maintenance expense

 

2,501

 

2,132

 

2,481

 

2,067

 

2,201

 

1,793

 

7,183

 

5,992

 

 

 


 


 


 


 


 


 


 


 

Total net software expense

 

$

4,119

 

$

3,648

 

$

4,549

 

$

3,705

 

$

3,936

 

$

3,416

 

$

12,604

 

$

10,769

 

 

 



 



 



 



 



 



 



 



 


      *    Base excludes TechRx