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SBN » Topics » Our revenue is largely dependent on renewal of maintenance agreements by our customers.These excerpts taken from the SBN 10-K filed Dec 10, 2008. Our
revenue is largely dependent on renewal of maintenance
agreements by our customers.
We generate substantial recurring revenue from our customer
support program and other software maintenance services, most of
which renew annually at the customer’s option. For the year
ended September 30, 2008, we generated $55.7 million,
or approximately 56%, of our total revenue from software
maintenance and support. The level of our maintenance revenue is
directly related to the number of our software products that are
in active use by customers. If our customers stop using our
products, if we are unable to maintain the rate of addition of
new customers, or if our customers determine that they cannot
afford maintenance, our maintenance revenue can be expected to
decline. We expect that maintenance revenue from legacy products
for which we have decreased or curtailed development funding
will decline over time. Further, we have announced our intent to
discontinue providing standard support services for some of our
hospitality legacy applications in fiscal 2009. We intend to
work with our legacy customers to make it advantageous to
migrate to our current offerings, but there is no guarantee they
will do so.
Our revenue is largely dependent on renewal of maintenance agreements by our customers. We generate substantial recurring revenue from our customer support program and other software maintenance services, most of which renew annually at the customer’s option. For the year ended September 30, 2008, we generated $55.7 million, or approximately 56%, of our total revenue from software maintenance and support. The level of our maintenance revenue is directly related to the number of our software products that are in active use by customers. If our customers stop using our products, if we are unable to maintain the rate of addition of new customers, or if our customers determine that they cannot afford maintenance, our maintenance revenue can be expected to decline. We expect that maintenance revenue from legacy products for which we have decreased or curtailed development funding will decline over time. Further, we have announced our intent to discontinue providing standard support services for some of our hospitality legacy applications in fiscal 2009. We intend to work with our legacy customers to make it advantageous to migrate to our current offerings, but there is no guarantee they will do so. | EXCERPTS ON THIS PAGE:
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