I thought it may have looked good in the low $3 range but it appears that their 07 total license revenue is 15.8 million, a decline of 700K from 06. The enterprise licensing continues to disappoint. More concerning is that their maintenance revenue dropped by 200K in Q4 v Q3, and for the year only increased 400K on license revenue of 15.8. Did they lose a large customer? That maintenance number should be much larger. Am I missing something?
With respect to their enterprise sales, your are absolutely correct, pay attention and follow closely. Per their 10K annual report, "We have experienced a trend of decreasing annual license revenue over the last four fiscal years. License revenue has decreased due to closing fewer large licensing transactions with our enterprise customers, particularly with U.S.-based digital service providers....." We were not profitable in 2007. In addition, we intend to make significant investments in support of our business in 2008 and we expect to continue to sustain losses in 2008 and possibly subsequent periods."