Some Assurance from the CEO In an e-mail requesting explanation regarding a substandard quarter I was given the following explanation which left me somewhat relieved:
"Rest assured that I and the rest of my management team are not satisfied with our performance in Q1 – as we stated in the press release many of our customers have delayed orders and we are comfortable that these are merely delays and not cancellations. That said, we are working to limit the short term impact of any one product line making a material difference in our quarterly performance. What happened in Q1 was a combination of lower than expected revenue in most of our business lines, something we don’t often see. As for your second question Acceleware has 3 main business lines – our product revenue comes from Electromagnetic Simulation and Seismic Imaging products that heavily rely on GPUs, and these products, particularly AxRTM are growing. The second line of business is taking what we know about GPU (and other parallel processing architectures) and providing services to customers. Not only does this provide revenue, but also allows us to introduce our products to those customers, or gives us opportunities to develop new products. Finally, we are the recognized leader in GPU programming training. Again we do this to provide short term revenue, and to drive customers to the other two lines of business. Recently, at the 2012 NVIDIA GTC conference we had over 250 people attend a one day tutorial on GPU programming."