John Panachone

So we had very large early customers like John Deere, for example, and they needed what we have years ago.

So we built what today is now our out of the box product really from a custom basis with many of our early large customers that needed our application where none existed at the time.

So those years were very unprofitable.

It was very hard to make money.

It was a lot of services and custom development of the product.

So we had to fund our early losses through the funding that I summarized for you.

But as the product matured, it became a matter of configuration versus customization.

And as we do more and more configuration of a rather mature product now –

profitability is a lot higher and we can sustain our historical customers on a much more profitable basis and spin up new customers much more profitably.

Yeah, we're at about 10% EBITDA right now and about a 65% gross margin.

Well,

I don't know specifically, we've been running the books the same way for 15 years.

You know, some software companies divide up their engineering dollars differently as I've compared our financials to others.

So we basically split it.

We try to be really disciplined about what we put in COGS.

We put a lot of our engineering dollars, which is a sizable amount of our cost structure below the line.

We put our hosting expenses up there, our labor expenses associated with the services and the support that goes up there.

Yeah, the part that is associated with the customer delivery.

We have a pretty robust partner program ourselves.

We practice what we preach, so our sales and marketing organization is below the line.