We believe our plan will strengthen our relationships with our existing customers and provide new income streams by targeting additional English-speaking auto industry aftermarkets for our
Impact of Currency Exchange Rate
Our net revenue derived from sales in currencies other than the U.S. dollar was 69% and 70% for the years ended
June 30, 2013and June 30, 2012, respectively. As the U.S. dollar strengthens in relation to the British Pound ("GBP"), as it has recently done, our revenue and income, which is reported in U.S. dollars, is negatively impacted. Changes in the currency values occur regularly and in some instances may have a significant effect on our results of operations. Income and expenses of our MAM subsidiary are translated at the average exchange rate. The exchange rate for MAM's operating results was US $1.5676per GBP for the year ended June 30, 2013, compared with US $1.5844per GBP for the year ended June 30, 2012. Assets and liabilities of our MAM subsidiary are translated into U.S. dollars at the period-end exchange rates. The exchange rate used for translating our MAM subsidiary was US $1.5208per GBP at June 30, 2013and US $1.5615per GBP at June 30, 2012. Currency translation (loss) adjustments are accumulated as a separate component of stockholders' equity, which totaled ( $1,168,000) and ( $930,000) as of June 30, 2013and 2012, respectively. Backlog As of June 30, 2013, we had a backlog of unfilled orders of business management systems of $1,697,000, compared to a backlog of $1,324,000at June 30, 2012. We expect to fill approximately 65% of such backlog during the next six months. Results of Operations
Our results of operations for the fiscal year ended
Revenues. Revenues increased
Revenues in our
U.K.business were 12,043,000GBPfor the year ended June 30, 2013as compared to 11,607,000GBPfor the year ended June 30, 2012. Revenues increased 436,000GBPor 3.8% primarily from increased recurring revenue offset by lower revenue from new system sales, which resulted in a overall increase in reported revenues of $488,000. The stronger U.S. dollar resulted in lower reported revenues of $202,000. U.K.revenues reported in U.S. dollars were $18,878,000for 2013 as compared to $18,390,000for 2012, which is an increase of $488,000. U.S. revenues increased $887,000or 11.5% to $8,587,000in 2013 from $7,700,000in 2012, the result of increased software sales of $358,000and increased recurring revenues of $529,000.