Support.com 2007 Annual Report Download - page 41

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Results of Operations
The following table presents certain consolidated statements of operations data for the periods indicated as a percentage of total revenue.
Years Ended December 31,
2007
2006
2005
Revenue:
License fees 33% 36% 53%
Maintenance 34 35 23
Services 33 29 24
Total revenue 100 100 100
Costs and expenses:
Cost of license fees 0 1 1
Cost of maintenance 5 3 2
Cost of services 42 30 21
Amortization/write-down of intangible assets 6 2 2
Research and development 20 20 18
Sales and marketing 64 52 40
General and administrative 20 23 14
Total costs and expenses 157 131 98
Income (loss) from operations (57) (31) 2
Interest income and other, net 14 14 6
Income (loss) before income taxes (43) (17) 8
Provision for income taxes (2) (1) (1)
Net income (loss) (45)% (18)% 7%
Years Ended December 31, 2007, 2006, and 2005
Revenue
($ in thousands)
2007
% Change
2006 to 2007
2006
% Change
2005 to 2006
2005
License fees $ 15,780 (4)% $ 16,415 (50)% $ 32,737
Maintenance 16,084 3% 15,672 9% 14,317
Services 15,938 23% 12,941 (13)% 14,877
Total revenue $ 47,802 6% $ 45,028 (27)% $ 61,931
Total Revenue. Almost all of our revenue to date has been derived from our traditional enterprise customers and has consisted of software license fees and
fees for maintenance, consulting, hosting and training services. Over the last three years, we have licensed our software to enterprise customers predominately on
a perpetual basis in which we recognize the license revenue up front, assuming all criteria for revenue recognition under the applicable accounting rules have
been met. Maintenance fees relating to perpetual software licenses result in ratable revenue over the period of the maintenance term, which is generally one year.
Consulting and training revenues are generally recognized as the services are performed or in accordance with predefined project milestones. Hosting fees are
recognized ratably over the term of the hosting arrangement. Revenue from our consumer offerings have been derived predominantly from services that are
generally paid on a per transaction basis. For
37
Source: SUPPORTSOFT INC, 10-K, March 13, 2008