Telanetix, Inc. (fka TNIX)

[nole92]

Yes, they are losing two large legacy customers. The revenue from these two have declined over the past year. The focus going forward is to grow the core phone business. They are increasing qtr to qtr revenue even with the decline in those customers. Here's some more info from the 10-Q:

Net revenues for the three months ended March 31, 2010 were $7.7 million, an increase of $0.6 million, or 9.1%, over the same period in 2009. The increase in revenues is due to strong growth in our Digital Phone Service products and to increased success in selling SIP Trunking Service through direct and agent channels. We expect revenue growth in Digital Phone Service and SIP Trunking Service to continue to be strong throughout 2010.

The increase in these revenues was partially offset by a decline in our Legacy revenue. During the three months ended March 31, 2010, we received notice from two of our significant Legacy customers that they would be terminating our service during the course of 2010. This service is an older product offering, that had been in place with these customers for several years. We had known for some time that the customers would move away from the service eventually and the revenue generated by these customers had been declining over recent years. Revenue received from these customers accounted for approximately 15% of our revenues during the three months ended March 31, 2010, as compared to 20% in the same period in 2009.

TNXI also discussed this in the conference call in March:
http://biz.yahoo.com/cc/2/111692.html

As to your other question about the 'charge' in Q1 for the fair value of warrants. You will continue to see the fair value assessment in future reports, however they are not always a liability...sometimes the assessment will add income. (see Q4)

nole