Revenue and Cost of Goods Sold Information

9 Months Ended

Jun. 30, 2011

Revenue and Cost of Goods Sold Information [Abstract]

Revenue and Cost of Goods Sold Information

Note 2. Revenue and Cost of Goods Sold Information

The Company operates and manages the business as one reportable segment. Factors used to identify the single operating segment include the financial information available for evaluation by the chief operating decision maker in making decisions about how to allocate resources and assess performance. For the three and nine months ended June 30, 2011 and 2010, the Company reported the following revenues and related cost of goods sold by type (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Revenue:
Software	$	11,381	$	11,042	$	34,102	$	31,508
Hardware systems		4,875		5,362		11,507		17,142
Services		768		984		2,134		3,213
Other		—		566		—		1,719
Total revenue	$	17,024	$	17,954	$	47,743	$	53,582

	For the Three Months Ended				For the Nine Months Ended
	June 30,				June 30,
	2011		2010		2011			2010
Cost of goods sold:
Software	$	2,878	$	2,700	$	8,348		$	7,880
Hardware systems		5,305		5,004		12,515			16,541
Services		936		919		2,578			2,451
Other		—		289		(21	)		797
Total cost of goods sold	$	9,119	$	8,912	$	23,420		$	27,669

Software revenue includes monthly subscriptions from XataNet and Xata Turnpike solutions, monthly fees from MobileMax solution and activation fees. Hardware systems revenue includes hardware, warranty and repair revenue. Services revenue includes training, implementation, installation, and professional service revenue.

Cost of software consists of communication, hosting costs, depreciation of Xata Turnpike units, and direct personnel costs related to network, infrastructure, as well as Xata Turnpike customer support. Cost of hardware systems consists of the direct product costs, warranty costs, product repair costs, and direct personnel costs related to XataNet and MobileMax technical support. Cost of services consists of third party vendor costs and direct costs related to service personnel.