Consolidated:
| |
|
Three months ended
|
|
|
|
November 3 0 , 2011
|
|
|
November 30, 2010
|
|
|
|
Dollars
|
|
|
% of Revenue
|
|
|
Dollars
|
|
|
% of Revenue
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License and service revenue
|
|
$ |
47,587 |
|
|
|
100.0% |
|
|
$ |
72,775 |
|
|
|
100.0% |
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License and service revenue
|
|
|
12,313 |
|
|
|
25.9% |
|
|
|
5,000 |
|
|
|
6.9% |
|
|
Amortization of purchased intangibles
|
|
|
- |
|
|
|
- |
|
|
|
68,889 |
|
|
|
94.7% |
|
|
Total cost of sales
|
|
|
12,313 |
|
|
|
25.9% |
|
|
|
73,889 |
|
|
|
- |
|
|
Gross profit (loss)
|
|
$ |
35,274 |
|
|
|
74.1% |
|
|
$ |
(1,114 |
) |
|
|
- |
|
PDSG
Revenue consisting of software licenses and associated services relating to PDSG’s CDX product decreased from approximately $73,000 for the three months ended November 30, 2010 to approximately $48,000 for the three months ended November 30, 2011. The decrease was primarily due to the level of activity and progress towards completion rendered on one time contracts that vary in size and scope depending upon the requirements of the customer. Cost of sales includes the direct time of PDSG employees on each project. Included in cost of sales is approximately $68,900 of amortization expense on purchased intangible assets for the three months ended November 30, 2010. Profit margin excluding amortization decreased for the three months ended November 30, 2011 as compared to the three months ended November 30, 2010 due to a greater portion of service revenue generated in the current period as compared to the prior period. During fiscal 2011, we wrote off PDSG’s remaining balance of purchased intangible assets.
