We derive revenue primarily from the sale of software licenses to telecommunications operators. Other sources of revenue are maintenance services and bespoke software consultancy.
The four companies that make up the Horizon Globex group produce software for Horizon Globex GmbH so that it may issue software invoices to our customers. Profits from Horizon Globex GmbH are reduced by paying for services rendered by its three sister companies; services which are provided to Horizon Globex GmbH, Switzerland on a cost-plus basis.
Horizon Globex recognizes revenue when it is realized or realizable and earned. We establish persuasive evidence of a sales arrangement for each type of revenue transaction based on a signed contract with the customer and that delivery has occurred or services have been rendered, price is fixed and determinable, and collectability is reasonably assured.
Software and licenses – revenue from sales of perpetual licenses to telecom entities is recognized at the date of invoices raised for installments due under the agreement, unless payment terms exceed one year, as described below, presuming all other relevant revenue recognition criteria are met.
Revenue for user licenses purchased by customers is recognized when the user license is delivered except as set out below.
Revenue for maintenance services is recognized over the period of delivery of the services except as set out below.
Where the Company has entered into a Revenue Share with the customer then all future revenue from granting of user licenses and for maintenance services will be recognized when the Company has delivered user licenses and is entitled to invoice.