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Tuesday, 12/13/2005 3:27:26 PM

Tuesday, December 13, 2005 3:27:26 PM

Post# of 25232
TUTR: short small amount into earnings. From previous Q; Total revenues for the three and nine months ended July 31, 2005 decreased, as compared to the same periods in 2004, primarily due to the impact of several initiatives implemented in 2005 and to sales force attrition. Initiatives included the realignment of the sales and service organizations to better serve specific markets and the implementation of new systems and procedures aimed at improving the efficiencies of our sales process in the future. These changes affected all non-service revenues, including deferred revenues. While these changes have a short-term negative impact, we expect that they will have a positive impact in the longer term. The learning process related to implemented changes is ongoing and, while improvements are being made, we anticipate that our sales performance for the fourth quarter of 2005 will also be affected. Funding delays in certain states could continue as well. As a result, we expect our fourth quarter 2005 revenues to be between $33,000 and $36,000, which is lower than 2004.
We executed 50 orders of $100 or greater during the three months ended July 31, 2005, as compared to 70 for the same period in 2004. This decrease can be attributed to the factors affecting revenue mentioned above, resulting in lower order volume. The average size of orders between $100 and $249 increased from $148 to $159, while the average size of orders of $250 and greater decreased from $750 to $470. The number and magnitude of these larger orders has a significant impact on our operating results.

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