Products and Services

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2011		2010		2011		2011
SaaS fees	$	1,924	$	2,106	$	5,740	$	6,482
Custom engineering fees		339		210		676		728
Total Revenue	$	2,263	$	2,316	$	6,416	$	7,210

Major Customers

For the three and nine month periods ended September 30, 2011, HP accounted for 50.4% and 48.3% of Company revenue, respectively, compared to 48.1% and 50.9% for the three and nine month periods ended September  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 nine months ended September 30, 2011, revenue from the contract with HP for HP customer A accounted for 18.8% and 18.9% of total revenue, respectively, compared to 23.6% and 24.6% of revenue for the three and nine months ended September 30, 2010, respectively.  For the three and nine months ended September 30, 2011, revenue from the contract with HP for HP customer B accounted for 15.0% and 15.7% of total revenue, respectively, compared to 14.7% and 14.6% of revenue for the three and nine months ended September 30, 2010, respectively.  For the three and nine months ended September 30, 2011, revenue from the contract with HP for HP customer C accounted for 16.6% and 13.7% of total revenue, respectively, compared to 9.8% and 11.7% of revenue for the three and nine months ended September 30, 2010, respectively.

For the three and nine month periods ended September 30, 2011, IBM accounted for 30.9% and 33.1% of revenue, respectively, compared to 34.0% and 33.6% for the three and nine month periods ended September 30, 2010, respectively.  For the three and nine month periods ended September 30, 2011, Siemens accounted for 10.2% and 10.9% of revenue, respectively, compared to 10.2% for both the three and nine month periods ended September 30, 2010.  Accounts receivable from these customers amounted to $1,450,000 and $1,243,000 at September 30, 2011 and December 31, 2010, respectively.