Hardware revenue in the first quarter 2013 increased 88% year-over-year to RMB4.2 million (US$0.7 million) from RMB2.2 million in the first quarter 2012. The increase was a result of the completion of some large contracts from grocery industry in the first quarter 2013.
Service fee income for the first quarter 2013 decreased 7% year-over-year to RMB11.7 million (US$1.9 million) from RMB12.6 million in the first quarter 2012, which was primarily attributable to decreased revenue recognized in customization services in the grocery industry, which was partially offset by an increase in sales of maintenance and consulting services.
Cost of Revenue
Cost of revenue for the first quarter 2013 decreased 4% to RMB13.8 million (US$2.2 million) from RMB14.3 million in the first quarter 2012.Cost of Revenue Breakdown
|RMB '000||RMB '000||USD '000||Y-o-Y Change|
|Cost of software license sales||1,815||387||62||-79%|
|Cost of hardware sales||1,771||3,722||599||110%|
|Cost of service fee||8,370||8,611||1,387||3%|
|Amortization of acquired technology||1,729||215||35||-88%|
|Amortization of software costs||618||865||139||40%|