FISCAL YEAR ENDED
JUNE 30, 2012COMPARED TO FISCAL YEAR ENDED JUNE 30, 2011Results for the year ended June 30, 2012continued to demonstrate significant growth and improvements in the Company's operations. Highlights of year over year improvements include: ? Total revenue up 27%; ? Recurring license and transaction fee revenue up 42%; ? New connections up 38%; and, ? Gross profit dollars up 29%. The growing ePort Connect service base of connections drove the 42% increase in license and transaction fee revenue. Revenue from license and transaction fees, which is fueled primarily by monthly ePort Connect® service fees and transaction processing fees, grew to approximately $23 millionfor fiscal 2012 from $16 millionfor fiscal 2011. These recurring revenues represented 81% of total revenue for the fiscal 2012 year.
License and transaction fee highlights for the year ended
? 45,000 additional net connections to the Company's ePort Connect service in
fiscal 2012; Total connected service base to 164,000 as of
compared to 119,000 as of
June 30, 2011, an increase of approximately 38% compared to connections at June 30, 2011; ? Increases in the number of small-ticket, credit/debit transactions and
dollars handled in the fiscal year of 43% each compared to the same period a
year ago; and,
? 69% growth in ePort Connect customers, fueled by 1,350 new customers in the
2012 fiscal year for 3,300 customers at
Revenues for the fiscal year ended
June 30, 2012were $29,017,243, consisting of $23,370,754of license and transactions fees and $5,646,489of equipment sales, compared to $22,868,789for the fiscal year ended June 30, 2011, consisting of $16,442,485of license and transaction fees and $6,426,304of equipment sales. The increase in total revenue of $6,148,454, or 27%, was primarily due to an increase in license and transaction fees of $6,928,269, or 42%, from the prior year, and a decrease in equipment sales of $779,815or 12%, from the prior year. The increase in license and transaction fees was due to the growth in ePort Connect service fees and transaction dollar volume from the increased number of connections to our ePort Connect service. As of June 30, 2012, the Company had approximately 164,000 connections to the ePort Connect service as compared to approximately 119,000 connections to the ePort Connect service of June 30, 2011. During the year ended June 30, 2012, the Company added approximately 45,000 connections to our network as compared to approximately 37,000 connections during the year ended June 30, 2011. The JumpStart Program units represented approximately 65% and 60% of net connections added during the 2012 and 2011 fiscal years, respectively. Pursuant to its agreements with customers, the Company, in addition to ePort Connection service fees, earns transaction processing fees equal to a percentage of the dollar volume processed by the Company, which are included as licensing and transaction processing revenues in its Consolidated Statements of Operations. During the year ended June 30, 2012, the Company processed approximately 103 million transactions totaling approximately $171 millioncompared to approximately 72 million transactions totaling approximately $120 millionduring the year ended June 30, 2011, an increase of approximately 43% in the number and value of transactions processed.