This excerpt taken from the BPHX 20-F filed Mar 31, 2005.
We provide our modernization solutions directly or through our strategic partners, such as IBM, Capgemini, EDS, Cook Systems, Temenos, Millennium and TACT. Additionally, from time to time, other IT services companies license our technologies for use in modernization projects in various markets. Our partners are usually system integrators who assist us in increasing our penetration and exposure in the market. We provide solutions to our partners customers in collaboration with the system integrators team. In most cases, the partners provide related services to the customers. Our arrangements with our partners vary. We may enter into distribution agreements with the partners under which we grant license rights to the partners and/or the partners customers, provide related services or a combination of both. Alternatively, we may enter into subcontractor relationships with our strategic partners.
Approximately 10% of our agreements are based on fixed price contracts. Although we have significant experience in pricing fixed price projects, these projects may bear some risks and uncertainties as we price these contracts based on estimates of future costs, duration of the project and the impact potential changes in the scope of the work. We also enter into other types of contracts, including annual maintenance contracts, license agreements and arrangements on a time and material basis. To date, shifts in revenues generated from different types of agreements have not materially affected our results of operations.
Our customers include, among others:
Each of the customers mentioned above contributed at least $600,000 to our annual revenues for a project performed within the previous two fiscal years.
SDC Udvikling A/S, referred to as SDC Udvikling, an affiliated company of SDC, accounted for 15% and 14% of our revenues in 2004 and 2003, respectively.
The following table summarizes the revenues from our tools and services by geographic regions for the periods indicated: