· Hardware, software and service revenue increased by 36.3%, 7.7% and 35.3%,
respectively, compared to fiscal year 2012. The increases were largely
attributable to the approximately
generated by the acquired Torex businesses during fiscal year 2013 as compared
to fiscal year 2012. This increase was comprised of hardware revenue of
and services revenue of approximately
· Unfavorable foreign currency exchange rate fluctuations, primarily for the
Euro, Brazilian Real, Japanese Yen, and British Pound Sterling against the U.S.
dollar, negatively affected total revenue by approximately
Canadasegment revenue for the fiscal year ended June 30, 2013decreased by approximately $23.3 million, or 4.5% compared to fiscal year 2012, principally due to the following factors:
· Hardware, software and service revenue decreased by 6.7%, 11.5% and 2.5%,
respectively, compared to fiscal year 2012. We believe these changes reflect a
continued negative impact from macro-economic conditions.
· The decrease in hardware revenue was primarily due to decreased sales of our
Workstation products compared to fiscal year 2012.
· The decrease in software revenue was primarily due to decreased sales of our
food and beverage and hotel software products. These decreases were partially
offset by an increase in sales of our retail software products.
· The decrease in service revenue was primarily due to decreases in professional
services and web based marketing services, partially offset by an increase in
maintenance services, reflecting the continued expansion of our customer base
and new products and services offerings including hosting and software-as-a-service. 34
Cost of Sales The following table provides information regarding our cost of sales in fiscal years 2013 and 2012: Fiscal Year Ended June 30, 2013 2012 Cost % of Related Cost % of Related (in thousands) of Sales Revenue of Sales Revenue Hardware
$ 175,24865.0 % $ 152,24264.0 % Software 22,178 15.5 % 20,779 14.6 % Service 406,767 47.6 % 319,900 44.0 % Total Cost of Sales $ 604,19347.6 % $ 492,92144.5 %
For fiscal year 2013, cost of sales as a percent of revenue increased 3.1% to 47.6% compared to 44.5% in fiscal year 2012. Hardware cost of sales as a percent of hardware revenue for fiscal year 2013 increased 1.0% compared to the same period last year. Software cost of sales as a percent of software revenue for fiscal year 2013 increased 0.9% compared to the same period last year. Service costs as a percent of service revenue for fiscal year 2013 increased by 3.6% compared to the same period last year. These increases primarily reflect margins generated by Torex. When compared to our other businesses, Torex generally has higher sales of non-proprietary hardware, and realizes lower margins from its products and services.