HispanicBusiness

Total software license revenue grew by 7% in the three months ended December 31, 2012, compared to the same period of the previous fiscal year, due to the increase in annuity/maintenance license revenue offset by a decrease in perpetual sales. Similarly, total software license revenue grew by 14% for the nine months ended December 31, 2012, compared to the same period of the previous fiscal year, as a result of the increase in annuity/maintenance revenue stream offset by the decrease in perpetual license sales.

CMG's annuity/maintenance license revenue increased by 16% and 29% during the three and nine months ended December 31, 2012, respectively, compared to the same periods of last year. These increases were driven by sales to new and existing clients as well as an increase in maintenance revenue tied to perpetual sales generated in the current and previous fiscal years. The majority of this increase was attributed to sales to our Canadian and the United States' markets. The increase in our annuity/maintenance revenue for the three months ended December 31, 2012 has been obscured by the variability of a payment received from one of our large customers for whom revenue recognition criteria are fulfilled only at the time of the receipt of funds. During the current quarter, we received approximately half of the amount received during the same period of the previous year. The amount received during the third quarter of the previous year represented an initial payment on a multi-year arrangement. If we were to exclude revenue received from this particular customer from the third quarter's recorded revenue in both the current and previous years, to provide a normalized comparison, we would note that the annuity/maintenance revenue actually grew by 34% for the three months ended December 31, 2012, compared to the same period of the previous fiscal year.

This arrangement did not have a significant impact on our year-to-date comparative information since similar payments have been received during the nine months ended December 31, 2012 and 2011.

Given our long-standing relationship with this client, and the multi-year nature of the contract, we expect to continue to receive payments under this arrangement; however, the amount and timing are uncertain and will continue to be recorded on a cash basis which may introduce some variability in our reported quarterly annuity/maintenance revenue results.

Our annuity/maintenance license sales, representing our recurring revenue stream, have continued to experience consecutive quarterly increases over the past several fiscal years, and this trend continued in the third quarter of fiscal 2013.

We can observe from the table below that the exchange rates between the US and Canadian dollars during the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year, had only a slight positive impact on our reported annuity/maintenance revenue.

Software license revenue under perpetual sales decreased by 41% for the three months ended December 31, 2012, compared to the same period of the previous fiscal year, due to fewer perpetual sales being realized in the United States and Eastern Hemisphere markets in the current quarter.

Perpetual license sales for the nine months ended December 31, 2012, decreased by 34% compared to the same period of the previous fiscal year. In the first quarter of the previous fiscal year, we reported an amount associated with a multi-million dollar perpetual contract in the Eastern Hemisphere which contributed significantly to the revenue growth in the first nine months of the previous fiscal year.