LogicVision�s revenue stream is characterized by low-volume, high-dollar transactions, which can be as large as $10 million over a three to four year period. Products are typically licensed on a one-year subscription basis, so renewal and pricing terms must be carefully tracked, but there are also some perpetual/term licenses in the installed base.

A number of other business issues complicate the accounting picture. The basis for product pricing can be per seat or per design. There are multiple product lines and customers often add users and products over the course of a multiyear agreement. In addition, large accounts have site license arrangements that give them a la carte rights to various products. While this subscription-based approach simplifies revenue recognition, allocating revenue across products, services, and maintenance can be complex.

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