Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tom Liston – Versant Partners.
Tom Liston – Versant Partners
One of the notes says on the MEM side you reported $1.6 million in license revenue and in a later note it talked about MEM and WPM contributing $1.56 and obviously I don’t think there is negative revenue from WPM’s. Can you give us a little more color on what happened during the quarter? Was some of that $1.66 in license revenue from MEM actually deferred to a future quarter or what might be going on there?
Nicole Sayler
Actually Tom some of that revenue would be counted like when we look at how our product revenue is broken down it would be counted in other places. So it might be OPC or Manager. It is still the same amount.
Tom Liston – Versant Partners
Just along that line it talked about the total revenue versus license. Can you give us a rough ratio of what a MEM deal might look like in terms of what type of consulting revenue it will be? Obviously a little larger license revenue, maybe not as much consulting revenue on a typical install?
Nizar Somji
It is difficult to say because MEM has three components to it. MEM has what is a data logger which actually sits on the mobile equipment itself and the data logger is about 25% to 1/3 hardware and about 75% to 2/3 software which is Matrikon software. Then the second portion of that is the middle layer or consolidating layer where all the data logger is actually consolidating to a central location and all the data is archived, stored and so on. That has a license revenue component to it and then there is a visualization component.
Then there is also the services component to drive that. So depending on the extent at which we do things, it could vary between how many actual pieces of mobile equipment we are installing and how many data loggers we are putting in.
I have probably given you a little more detail than you need but it is very hard to answer your question in average terms because a smaller installation say with 10 data logger installations may have a higher software component and lower services component. 50-100 data logger installation may have a decent size services component to get all the install and commission ready to go.
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