Eastern Hemisphere (representing 27% of the year-to-date total software revenue) grew annuity/maintenance license sales during both the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year. Perpetual license sales decreased in both the three and nine months ended December 31, 2012, compared to the same periods of the previous fiscal year. Year-to-date perpetual sales decreased as a result of the large perpetual sale made during the first quarter of the previous fiscal year which contributed significantly to revenue growth during the nine months ended December 31, 2011.
Movements in perpetual sales across regions are indicative of the unpredictable nature of the timing and location of perpetual license sales. Overall, our recurring annuity/maintenance revenue base continues to be strong and growing across all regions. We will continue to focus our efforts on increasing our license sales to both existing and new clients and, supported by our product suite offering and our customer-oriented approach, we will endeavor to continue expanding our market share globally.
As footnoted in the Quarterly Performance table, in the normal course of business, CMG may complete the negotiation of certain annuity/maintenance contracts and/or fulfill revenue recognition requirements within a current quarter that includes usage of CMG's products in prior quarters. This situation particularly affects contracts negotiated with countries that face increased economic and political risks leading to revenue recognition criteria being satisfied only at the time of the receipt of cash. The dollar magnitude of such contracts may be significant to the quarterly comparatives of our annuity/maintenance revenue stream and, to provide a normalized comparison, we specifically identify the revenue component where revenue recognition is satisfied in the current period for products provided in previous quarters.
QUARTERLY SOFTWARE LICENSE REVENUE ($THOUSANDS)
To view the, 'Quarterly Software License Revenue" chart, please visit the following link: http://media3.marketwire.com/docs/211cmg_image1.jpg
DEFERRED REVENUE 2012 2011 $ change % change($ thousands)----------------------------------------------------------------------------Deferred revenue at:March 31 21,693 16,755 4,938 29%June 30 18,779 15,326 3,453 23%September 30 18,241 14,600 3,641 25%December 31 15,510 14,746 764 5%----------------------------------------------------------------------------
CMG's deferred revenue consists primarily of amounts for pre-sold licenses. Our annuity/maintenance revenue is deferred and recognized on a straight-line basis over the life of the related license period, which is generally one year or less. Amounts are deferred for licenses that have been provided and revenue recognition reflects the passage of time.
The increase in deferred revenue year-over-year as at December 31, September 30, June 30 and March 31 is reflective of the growth in annuity/maintenance license sales. The variation within the year is due to the timing of renewals of annuity and maintenance contracts that are skewed to the beginning of the calendar year which explains the decreases in the deferred revenue balance at the end of the first quarter (June 30), second quarter (September 30), and third quarter (December 31) compared to fiscal year-end (March 31).
