Products and Services

6 Months Ended

Jun. 30, 2011

Products and Services [Abstract]

Products and Services

6. Products and Services

The Company and its subsidiaries currently operate in one business segment and provide two separate products: SaaS services and custom engineering services.  The following table displays revenue by product (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
SaaS fees	$	1,920	$	2,204	$	3,816	$	4,377
Custom engineering fees		106		309		337		517
Total Revenue	$	2,026	$	2,513	$	4,153	$	4,894

Major Customers

For the three and six month periods ended June 30, 2011, HP accounted for 46.1% and 47.1% of Company revenue, respectively, compared to 51.7% and 52.2% for the three and six month periods ended June 30, 2010, respectively. HP utilizes the Company's products as tools to service their customers. The Company's revenue from HP is derived from three separate and distinct agreements with HP for each of HP's customers A, B, and C. For the three and six months ended June 30, 2011, revenue from the contract with HP for HP customer A accounted for 18.2% and 18.9% of total revenue, respectively, compared to 28.7% and 25.1% of revenue for the three and six months ended June 30, 2010, respectively. For the three and six months ended June 30, 2011, revenue from the contract with HP for HP customer B accounted for 16.4% and 16.1% of total revenue, respectively, compared to 14.0% and 14.5% of revenue for the three and six months ended June 30, 2010, respectively. For the three and six months ended June 30, 2011, revenue from the contract with HP for HP customer C accounted for 11.5% and 12.1% of total revenue, respectively, compared to 9.0% and 12.6% of revenue for the three and six months ended June 30, 2010, respectively.

For the three and six month periods ended June 30, 2011, IBM accounted for 35.5% and 34.3% of revenue, respectively, compared to 34.3% and 33.4% for the three and six month periods ended June 30, 2010, respectively.   For the three and six month periods ended June 30, 2011, Siemens accounted for 12.0% and 11.2% of revenue, respectively, compared to 9.7% and 9.9% for the three and six month periods ended June 30, 2010, respectively.  Accounts receivable from these customers amounted to $1,473,000 and $1,243,000 at June 30, 2011 and December 31, 2010, respectively.