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Monday, December 03, 2007 2:35:36 PM
From 10Q:
Cost of sales on a percentage basis decreased to 13.14% of revenue for the three months ended September 30, 2007 as compared to 20.60% of revenue for the three months ended September 30, 2006 for a net decrease of 7.46%. The decrease in Cost of Sales as a percentage of revenue of -7.46% is primarily attributed to a decrease in labor costs associated with reduced customer support due to improvements in the overall product, reduction of client software & licensing expenses, and use of subcontractors in product development.
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