HispanicBusiness

On a geographic basis, total software license sales increased across all regions with the exception of the South American market which experienced an overall decrease during the three months ended December 31, 2012, compared to the same period of the previous fiscal year, due to lower annuity/maintenance revenue, and the Eastern Hemisphere, which experienced a 12% decrease in the nine months ended December 31, 2012, compared to the same period of the previous fiscal year, due to lower perpetual sales. The most significant growth came from our annuity/maintenance license sales, with increases experienced across all regions for the nine months ended December 31, 2012.

The Canadian market (representing 39% of year-to-date total software revenue) experienced strong increases in annuity/maintenance license sales during the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year. These increases were supported by the sales to both new and existing clients. While perpetual sales decreased slightly in the current quarter, compared to the same period of the previous fiscal year, they experienced a healthy increase on a year-to-date basis. The Canadian market continues to be the leader in generating total software license revenue and, particularly, in generating the recurring annuity/maintenance revenue as evidenced by the quarterly year-over-year increases of 40%, 17%, 32% and 37% recorded during Q3 2012, Q4 2012, Q1 2013, and Q2 2013, respectively. This growth trend has continued into the third quarter of the current fiscal year with the recorded increase of 37%.

The US market (representing 19% of year-to-date total software revenue) also grew annuity/maintenance license sales during the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year. Fewer perpetual license sales were made during the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year. Similar to the Canadian market, we have continued to see successive increases in the annuity/maintenance license sales in the US as evidenced by the quarterly year-over-year increases of 20%, 26%, 20% and 24% recorded during Q3 2012, Q4 2012, Q1 2013, and Q2 2013, respectively. This growth trend has continued into the third quarter of the current fiscal year with the recorded increase of 32%.

South America (representing 16% of year-to-date total software revenue) experienced a decrease in annuity/maintenance revenue during the three months ended December 31, 2012, compared to the same period of the previous fiscal year. This decrease occurred due to the variability of the payment recorded on the long-term contract for which revenue is recognized on a cash basis. The third quarter of the previous year included the initial payment for a multi-year arrangement which was higher than the payment received in the current quarter for the provision of services in prior quarters (see the discussion about revenue earned in the current period that pertains to usage of products in prior quarters above the "Quarterly Software License Revenue" graph). If we were to adjust annuity/maintenance revenue recorded for the three months ended December 31, 2012 and 2011 for the described amounts, we would notice that the current quarter's revenue actually increased by 36%. Annuity/maintenance revenue for the nine months ended December 31, 2012 increased compared to the same period of the previous fiscal year due to sales to both new and existing clients. The increase in annuity/maintenance license sales was offset by a decrease in perpetual license sales during the nine months ended December 31, 2012.