Year ended June 30,
(Dollars in Thousands) 2013 2012 Change Change
7,081 NM (1 )
Interest (expense) income, net (30 ) 37 (67 ) NM (1 ) Other expense, net (388 ) (227 ) (161 ) 70.9 % Income (loss) before income taxes 4,617 (2,236 ) 6,853 NM (1 ) Provision for income taxes 369 651 (282 ) (43.3 %) Net income (loss)
$ 4,248 $ (2,887 )7,135 NM (1 )
(1) NM denotes percentage is not meaningful
Product Revenue. Total product revenue for fiscal year 2013 was approximately
$38.4 million, an increase of approximately $3.4 million, or 9.8%, from approximately $35.0 millionin fiscal year 2012. The increase in product revenue resulted primarily from the $2.5 million, or 17.1%, increase in real-time product revenue in fiscal year 2013, compared to the prior year. The increase in real-time product revenue resulted from our increasing volume of both iHawk and ImaGen system sales to defense contractors and the United States governmentduring fiscal year 2013. Real-time product orders from defense contractors and the government tend to vary by quarter and year, and are dependent upon government initiatives and funding availability. Additionally, video solutions product revenue increased $0.9 million, or 4.4%, during fiscal year 2013, compared to the prior fiscal year. This increase in video solutions product revenue was primarily due to resumption of spending by our two largest U.S. video customers, who made minimal purchases from us in fiscal year 2012, due to irregular spending patterns, coupled with the economic slowdown. This resumption of U.S. customer spending, coupled with increased video system and storage sales volume to customers in Canadathat expanded and in some cases replaced existing video systems, resulted in an $8.1 millionincrease in North American video solutions revenue during fiscal year 2013, compared to the prior fiscal year. The increase in North American video solutions revenue was mostly offset by a year over year decrease in video solutions revenue from our Asia-Pacificmarket. Fiscal year 2013 video solutions product revenue declined by $7.3 millionin our Asia-Pacificmarket primarily due to prior year video system and storage sales to our largest Japanese video solutions customer that did not recur in the current fiscal year. This Japanese video solutions customer represented 49.4% of total video solutions product revenue during the prior fiscal year. Fluctuation in video solutions product revenue is often due to the fact that we have a small number of customers making periodic large purchases that account for a significant percentage of our revenue. 33 -------------------------------------------------------------------------------- Table of Contents Service Revenue. Total service revenue for fiscal year 2013 was $25.0 million, a decrease of $0.3 million, or 1.1%, from approximately $25.3 millionin fiscal year 2012. Video solutions service revenue increased by $0.3 millionin fiscal year 2013, compared to the prior fiscal year due to additional professional services revenue in the current fiscal year. Offsetting the increase in video solutions service revenue, real-time service revenue for fiscal year 2013 decreased by $0.6 million, compared to the prior fiscal year. We have experienced a decline in real-time service revenues over the past few years, as our legacy products have been removed from service and, to a lesser extent, from customers purchasing our new products that produce less service revenue.