RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2013

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS

On July 19, 2010, the Company entered into a Master OEM Purchase and Sales Agreement (the "OEM Agreement") with GENBAND US LLC and GENBAND Ireland Ltd. (collectively, "GENBAND"), pursuant to which GENBAND may purchase any of the Company's existing software and hardware products, as well as procure licenses and services related to such products from the Company.  Pursuant to the OEM Agreement, the Company's Board of Directors supported the election of Mark Pugerude, Chief Strategy Officer of GENBAND, as a director of the Company beginning in fiscal 2012 through the Company's 2012 Annual Meeting of Stockholders on August 27, 2012, and B.G. Kumar, Executive Vice President and President of the Networking and Applications Product Unit of GENBAND, as a director of the Company beginning on the Company's 2012 Annual Meeting of Stockholders on August 27, 2012.  Mr. Kumar's service on the Company's Board of Directors will end on the date of the Company's 2013 Annual Meeting of Stockholders.

During the three months ended March 31, 2013 and 2012, the Company recognized revenue of approximately $0.1 million and $0.4 million, respectively, on sales to GENBAND.  At March 31, 2013 and December 31, 2012, the Company had accounts receivable of approximately $0.2 million and $38,000, respectively, from GENBAND.

As outlined in Note 15 - Subsequent Events, effective April 15, 2013, Procera and GENBAND terminated the OEM Agreement, and the letter agreement, dated July 19, 2010, between the Company and GENBAND US LLC.