Software licensing under perpetual sales is a significant part of CMG's business, but may fluctuate significantly between periods due to the uncertainty associated with the timing and the location where sales are generated. For this reason, even though we expect to achieve a certain level of aggregate perpetual sales on an annual basis, we expect to observe fluctuations in the quarterly perpetual revenue amounts throughout the fiscal year. It should be further pointed out that strong perpetual sales in previous quarters contributed to the increase in our recurring maintenance revenue in the current quarter.
We can observe from the table below that the exchange rates between the US and Canadian dollars during the three months ended December 31, 2012, had a slight negative effect on our reported perpetual license revenue whereas the inverse is true for the nine months ended December 31, 2012.
The following table summarizes the US dollar denominated revenue and the weighted average exchange rate at which it was converted to Canadian dollars:
For the three months ended December 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------US dollar annuity/maintenance license sales US$ 8,785 8,711 74 1%Weighted average conversion rate 1.001 0.992----------------------------------------------------------------------------Canadian dollar equivalent CDN$ 8,795 8,643 152 2%----------------------------------------------------------------------------US dollar perpetual license sales US$ 908 1,866 (958) -51%Weighted average conversion rate 0.994 1.019----------------------------------------------------------------------------Canadian dollar equivalent CDN$ 903 1,902 (999) -53%----------------------------------------------------------------------------For the nine months ended December 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------US dollar annuity/maintenance license sales US$ 24,361 20,160 4,201 21%Weighted average conversion rate 1.001 0.993----------------------------------------------------------------------------Canadian dollar equivalent CDN$ 24,393 20,020 4,373 22%----------------------------------------------------------------------------US dollar perpetual license sales US$ 4,159 9,144 (4,985) -55%Weighted average conversion rate 1.000 0.969----------------------------------------------------------------------------Canadian dollar equivalent CDN$ 4,160 8,857 (4,697) -53%----------------------------------------------------------------------------REVENUE BY GEOGRAPHIC SEGMENTFor the three months ended December 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Annuity/maintenance revenue Canada 5,490 4,007 1,483 37% United States 2,818 2,139 679 32% South America 2,435 3,481 (1,046) -30% Eastern Hemisphere(1) 3,261 2,429 832 34%---------------------------------------------------------------------------- 14,004 12,056 1,948 16%----------------------------------------------------------------------------Perpetual revenue Canada 227 420 (193) -46% United States - 390 (390) -100% South America 26 - 26 - Eastern Hemisphere 1,112 1,511 (399) -26%---------------------------------------------------------------------------- 1,365 2,321 (956) -41%----------------------------------------------------------------------------Total software license revenue Canada 5,717 4,427 1,290 29% United States 2,818 2,529 289 11% South America 2,461 3,481 (1,020) -29% Eastern Hemisphere 4,373 3,940 433 11%---------------------------------------------------------------------------- 15,369 14,377 992 7%----------------------------------------------------------------------------For the nine months ended December 31, 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Annuity/maintenance revenue Canada 15,902 11,648 4,254 37% United States 7,759 6,191 1,568 25% South America 6,770 5,229 1,541 29% Eastern Hemisphere(1) 8,765 7,293 1,472 20%---------------------------------------------------------------------------- 39,196 30,361 8,835 29%----------------------------------------------------------------------------Perpetual revenue Canada 1,541 452 1,089 241% United States 662 992 (330) -33% South America 509 1,291 (782) -61% Eastern Hemisphere 3,394 6,573 (3,179) -48%---------------------------------------------------------------------------- 6,106 9,308 (3,202) -34%----------------------------------------------------------------------------Total software license revenue Canada 17,443 12,100 5,343 44% United States 8,421 7,183 1,238 17% South America 7,279 6,520 759 12% Eastern Hemisphere 12,159 13,866 (1,707) -12%---------------------------------------------------------------------------- 45,302 39,669 5,633 14%----------------------------------------------------------------------------(1) Includes Europe, Africa, Asia and Australia.
