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Highlights
During the nine months ended December 31, 2012, as compared to the same period of prior fiscal year, CMG:
-- Increased annuity/maintenance revenue by 29%-- Increased operating profit by 9%-- Increased net income by 5%-- Increased spending on research and development by 19%-- Increased EBITDA by 10%-- Realized earnings per share of $0.47, representing a 2% increaseRevenueFor the three months endedDecember 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Software licenses 15,369 14,377 992 7%Professional services 1,433 1,521 (88) -6%----------------------------------------------------------------------------Total revenue 16,802 15,898 904 6%----------------------------------------------------------------------------Software license revenue - % of total revenue 91% 90%Professional services - % of total revenue 9% 10%----------------------------------------------------------------------------For the nine months endedDecember 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Software licenses 45,302 39,669 5,633 14%Professional services 4,039 4,150 (111) -3%----------------------------------------------------------------------------Total revenue 49,341 43,819 5,522 13%----------------------------------------------------------------------------Software license revenue - % of total revenue 92% 91%Professional services - % of total revenue 8% 9%----------------------------------------------------------------------------
CMG's revenue is comprised of software license sales, which provide the majority of the Company's revenue, and fees for professional services.
Total revenue increased by 6% for the three months ended December 31, 2012, compared to the same period of the previous fiscal year, due to an increase in software license sales driven by the growth in annuity/maintenance license sales.
Similarly, total revenue increased by 13% in the nine months ended December 31, 2012, compared to the same period of the previous fiscal year, as a result of the increase in software license sales led by the increase in annuity/maintenance revenue.
SOFTWARE LICENSE REVENUE
Software license revenue is made up of annuity/maintenance license fees charged for the use of the Company's software products which is generally for a term of one year or less and perpetual software license sales, whereby the customer purchases the-then-current version of the software and has the right to use that version in perpetuity. Annuity/maintenance license fees have historically had a high renewal rate and, accordingly, provide a reliable revenue stream while perpetual license sales are more variable and unpredictable in nature as the purchase decision and its timing fluctuate with the customers' needs and budgets. The majority of CMG's customers who have acquired perpetual software licenses subsequently purchase our maintenance package to ensure ongoing product support and access to current versions of CMG's software.
For the three months endedDecember 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Annuity/maintenance licenses 14,004 12,056 1,948 16%Perpetual licenses 1,365 2,321 (956) -41%----------------------------------------------------------------------------Total software license revenue 15,369 14,377 992 7%----------------------------------------------------------------------------Annuity/maintenance as a % of total software license revenue 91% 84%Perpetual as a % of total software license revenue 9% 16%----------------------------------------------------------------------------For the nine months endedDecember 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Annuity/maintenance licenses 39,196 30,361 8,835 29%Perpetual licenses 6,106 9,308 (3,202) -34%----------------------------------------------------------------------------Total software license revenue 45,302 39,669 5,633 14%----------------------------------------------------------------------------Annuity/maintenance as a % of total software license revenue 87% 77%Perpetual as a % of total software license revenue 13% 23%----------------------------------------------------------------------------
