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| R      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|------------------------------------------------------------------------------------------|
|   |                                                                                     |
|   | For the quarterly period ended September 30, 2010                                        |
|   |                                                                                     |
| OR     |
|   |                                                                                     |
| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

| Delaware                 |   | 76-0515249                              |
|--------------------------|--------|-----------------------------------------|
| (State of incorporation) |   | (I.R.S. Employer Identification Number) |

| Large accelerated filer £ | Accelerated filer £ | Non-accelerated filer £                  | Smaller reporting company R |
|--------------------------------|--------------------------|-----------------------------------------------|-----------------------------|
|                           |                     | (Do not check if a smaller reporting company) |                        |

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|                                                                                                                                             |  Page |
|--------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                             |       |
|  Explanatory Note                                                                                                                           |  3    |
|  Part I. Financial Information                                                                                                              |       |
|     Item 1. Financial Statements (Unaudited):                                                                                     |       |
|        Condensed Consolidated Balance Sheets at September 30, 2010 and December 31, 2009                           |  5    |
|        Condensed Consolidated Statements of Operations for the three months ended September 30, 2010 and 2009      |  6    |
|        Condensed Consolidated Statements of Operations for the nine months ended September 30, 2010 and 2009       |  7    |
|        Condensed Consolidated Statement of Stockholders’ Equity for the nine months ended September 30, 2010 |  8    |
|        Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009       |  9    |
|        Notes to Condensed Consolidated Financial Statements                                                        |  10   |
|     Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations                           |  22   |
|     Item 4. Controls and Procedures                                                                                               |  28   |
|  Part II. Other Information                                                                                                                 |       |
|     Item 1. Legal Proceedings                                                                                                     |  32   |
|     Item 6. Exhibits                                                                                                              |  32   |
|  Signature                                                                                                                                  | 32         |
|                                                                                                                                             |       |

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|   | 1.  | Restates its Condensed Consolidated Balance Sheet as of September 30, 2009, and |
|--------|----------|---------------------------------------------------------------------------------|

|   | 2. | Restates its Condensed Consolidated Statement of Operations for the three months and nine months ended September 30, 2009 and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2009, and the related disclosures in Notes to Condensed Consolidated Financial Statements. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | b. | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | c. | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |

|   | 2. | Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”), |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3. | Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and                                                         |

|   | 4. | Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                 |   | September 30, 2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                                                                                                                                 |   |                    |    |   |                   |   |
| ASSETS                                                                                                                                               |   |
| Current assets:                                                                                                                                      |   |                    |    |   |                   |   |
|    Cash and cash equivalents                                                                                                          |   | $                       | 11,546  |   |                   | $      | 13,247 |   |
|    Accounts receivable, net of allowance of $565 and $295, respectively                                                               |   |                    | 68,453  |   |                   |   | 52,269 |   |
|    Inventory, net                                                                                                                     |   |                    | 2,368   |   |                   |   | 7,527 |   |
|    Deferred costs                                                                                                                     |   |                    | 3,174   |   |                   |   | 1,497 |   |
|    Deferred income taxes                                                                                                              |   |                    | 2,351   |   |                   |   | --- |   |
|    Other current assets                                                                                                               |   |                    | 1,151   |   |                   |   | 1,106 |   |
|     Total current assets                                                                                                         |   |                    | 89,043  |   |                   |   | 75,646 |   |
| Property and equipment, net of accumulated depreciation of $7,347 and $5,825, respectively                                                           |   |                    | 4,590   |   |                   |   | 4,833 |   |
| Goodwill                                                                                                                                             |   |                    | 13,798  |   |                   |   | 13,870 |   |
| Intangible assets, net of accumulated amortization of $1,835 and $1,201, respectively                                                                |   |                    | 1,201   |   |                   |   | 1,760 |   |
| Deferred income taxes                                                                                                                                |   |                    | 3,394   |   |                   |   | — |   |
| Other assets                                                                                                                                         |   |                    | 191     |   |                   |   | 257 |   |
| Total assets                                                                                                                                         |   | $                       | 112,217 |   |                   | $      | 96,366 |   |
|                                                                                                                                                 |   |                    |    |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                           |   |
| Current liabilities:                                                                                                                                 |   |                    |    |   |                   |   |   |   |
|    Current portion of capital lease obligations                                                                                       |   | $                       | 172     |   |                   | $      | 192 |   |
|    Accounts payable floor plan                                                                                                        |   |                    | 45,247  |   |                   |   | 44,561 |   |
|    Accounts payable                                                                                                                        |   |                    | 7,972   |   |                   |   | 5,682 |   |
|    Accrued payroll and related costs                                                                                                  |   |                    | 7,892   |   |                   |   | 4,679 |   |
|    Accrued expenses                                                                                                                   |   |                    | 2,917   |   |                   |   | 4,838 |   |
|    Deferred revenue                                                                                                                   |   |                    | 4,052   |   |                   |   | 2,402 |   |
|    Other current liabilities                                                                                                          |   |                    | 640     |   |                   |   | 282 |   |
|     Total current liabilities                                                                                                    |   |                    | 68,892  |   |                   |   | 62,636 |   |
| Non-current liabilities:                                                                                                                             |   |                    |    |   |                   |   |   |   |
|    Non-current portion of capital lease obligations                                                                                   |   |                    | 91      |   |                   |   | 216 |   |
|    Other liabilities                                                                                                                  |   |                    | 1,618   |   |                   |   | 1,535 |   |
|     Total liabilities                                                                                                            |   |                    | 70,601  |   |                   |   | 64,387 |   |
|                                                                                                                                                 |   |                    |    |   |                   |   |   |   |
| Commitments and contingencies                                                                                                                        |   |                    |    |   |                   |   |   |   |
|                                                                                                                                                 |   |                    |    |   |                   |   |   |   |
| Stockholders’ equity:                                                                                                                          |   |                    |    |   |                   |   |   |   |
|    Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued                                           |   |                    | — |   |                   |   | — |   |
|    Common stock, $.01 par value, 15,000,000 shares authorized, 9,420,673 and 9,103,253 issued and outstanding, respectively |   |                    | 94      |   |                   |   | 91 |   |
|    Additional paid-in capital                                                                                                         |   |                    | 57,150  |   |                   |   | 54,269 |   |
|    Accumulated deficit                                                                                                                |   |                    | (15,628 | )      |                   |   | (22,381 | ) |
|       Total stockholders’ equity                                                                                 |   |                    | 41,616  |   |                   |   | 31,979 |   |
| Total liabilities and stockholders’ equity                                                                                                     |   | $                       | 112,217 |   |                   | $      | 96,366 |   |

----

|                                                                                         |   | Three Months Ended September 30, |      |
|----------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                         |   | 2010                                  |      |   | 2009 |   |
|                                                                                         |   |                                  |      |   | (As Restated, Note 3) |   |
| Revenue:                                                                                     |   |                                  |      |   |   |   |
|     Products                                                             |   | $                                     | 74,027    |   |   | $ | 46,577 |   |
|     Services                                                             |   |                                  | 10,886    |   |   |   | 11,166 |   |
| Total revenue                                                                                |   |                                  | 84,913    |   |   |   | 57,743 |   |
| Cost of products and services:                                                               |   |                                  |      |   |   |   |   |   |
|     Products                                                             |   |                                  | 57,355    |   |   |   | 36,394 |   |
|     Services                                                             |   |                                  | 8,407     |   |   |   | 8,318 |   |
| Total cost of products and services                                                          |   |                                  | 65,762    |   |   |   | 44,712 |   |
|         Gross profit                                 |   |                                  | 19,151    |   |   |   | 13,031 |   |
| Selling, general and administrative expenses                                                 |   |                                  | 17,392    |   |   |   | 13,249 |   |
|         Operating income (loss)                      |   |                                  | 1,759     |   |   |   | (218 | ) |
| Interest and other (expense) income, net                                                     |   |                                  | (12       | ) |   |   | 83 |   |
|         Income (loss) before income taxes            |   |                                  | 1,747     |   |   |   | (135 | ) |
| Income tax expense                                                                           |   |                                  | 820       |   |   |   | 66 |   |
|         Net income (loss) from continuing operations |   |                                  | 927       |   |   |   | (201 | ) |
| Loss from discontinued operations, net of taxes                                              |   |                                  | —   |   |   |   | (48 | ) |
|         Net income (loss)                            |   | $                                     | 927       |   |   | $ | (249 | ) |
|                                                                                         |   |                                  |      |   |   |   |   |   |
| Basic net income (loss) per share:                                                           |   |                                  |      |   |   |   |   |   |
|     Net income (loss) from continuing operations                         |   | $                                     | 0.10      |   |   | $ | (0.02 | ) |
|     Loss from discontinued operations, net of taxes                      |   |                                  | —   |   |   |   | (0.01 | ) |
|     Net income (loss) per share – basic                            |   | $                                     | 0.10      |   |   | $ | (0.03 | ) |
| Diluted net income (loss) per share:                                                         |   |                                  |      |   |   |   |   |   |
|     Net income (loss) from continuing operations                         |   | $                                     | 0.09      |   |   | $ | (0.02 | ) |
|     Loss from discontinued operations, net of taxes                      |   |                                  | —   |   |   |   | (0.01 | ) |
|     Net income (loss) per share – diluted                          |   | $                                     | 0.09      |   |   | $ | (0.03 | ) |
|                                                                                         |   |                                  |      |   |   |   |   |   |
| Weighted Average Shares - Basic                                                              |   |                                  | 9,294,873 |   |   |   | 8,927,549 |   |
| Weighted Average Shares - Diluted                                                            |   |                                  | 9,880,852 |   |   |   | 8,927,549 |   |

----

|                                                                                         |   | Nine Months Ended September 30, |      |
|----------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                                         |   | 2010                                 |      |   | 2009 |   |
|                                                                                         |   |                                 |      |   | (As Restated, Note 3) |   |
| Revenue:                                                                                     |   |                                 |      |   |   |   |
|     Products                                                             |   | $                                    | 209,191   |   |   | $ | 134,628 |   |
|     Services                                                             |   |                                 | 29,825    |   |   |   | 35,231 |   |
| Total revenue                                                                                |   |                                 | 239,016   |   |   |   | 169,859 |   |
| Cost of products and services:                                                               |   |                                 |      |   |   |   |   |   |
|     Products                                                             |   |                                 | 166,521   |   |   |   | 106,982 |   |
|     Services                                                             |   |                                 | 23,743    |   |   |   | 25,431 |   |
| Total cost of products and services                                                          |   |                                 | 190,264   |   |   |   | 132,413 |   |
|         Gross profit                                 |   |                                 | 48,752    |   |   |   | 37,446 |   |
| Selling, general and administrative expenses                                                 |   |                                 | 46,510    |   |   |   | 38,234 |   |
|         Operating income (loss)                      |   |                                 | 2,242     |   |   |   | (788 | ) |
| Interest and other income, net                                                               |   |                                 | 68        |   |   |   | 100 |   |
|         Income (loss) before income taxes            |   |                                 | 2,310     |   |   |   | (688 | ) |
| Income tax (benefit) expense                                                                 |   |                                 | (4,443    | ) |   |   | 66 |   |
|         Net income (loss) from continuing operations |   |                                 | 6,753     |   |   |   | (754 | ) |
| Loss from discontinued operations, net of taxes                                              |   |                                 | —   |   |   |   | (104 | ) |
|         Net income (loss)                            |   | $                                    | 6,753     |   |   | $ | (858 | ) |
|                                                                                         |   |                                 |      |   |   |   |   |   |
| Basic net income (loss) per share:                                                           |   |                                 |      |   |   |   |   |   |
|     Net income (loss) from continuing operations                         |   | $                                    | 0.73      |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes                      |   |                                 | —   |   |   |   | (0.01 | ) |
|     Net income (loss) per share – basic                            |   | $                                    | 0.73      |   |   | $ | (0.10 | ) |
| Diluted net income (loss) per share:                                                         |   |                                 |      |   |   |   |   |   |
|     Net income (loss) from continuing operations                         |   | $                                    | 0.69      |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes                      |   |                                 | —   |   |   |   | (0.01 | ) |
|     Net income (loss) per share – diluted                          |   | $                                    | 0.69      |   |   | $ | (0.10 | ) |
|                                                                                         |   |                                 |      |   |   |   |   |   |
| Weighted Average Shares - Basic                                                              |   |                                 | 9,201,862 |   |   |   | 8,818,793 |   |
| Weighted Average Shares - Diluted                                                            |   |                                 | 9,798,140 |   |   |   | 8,818,793 |   |

----

|                                                                                                                                                                                                                   |   | Common Stock |      |   | AdditionalPaid-In |   |    | Accumulated |   |   |    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|-------------------|--------|---------|-------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                   |   | Shares       |      |   | Amount            |   |    | Capital     |   |   | Deficit |   |   | Total |   |
|                                                                                                                                                                                                                   |   |         |      |   |              |   |    |        |   |   |    |   |   |   |   |
| Balance at December 31, 2009                                                                                                                                                                                      |   |         | 9,103,253 |   |              | $      | 91      |        |   | $      | 54,269  |   |   | $ | (22,381 | ) |   | $ | 31,979 |   |
|     Exercise of common stock options                                                                                                                                                               |   |         | 7,782     |   |              |   | — |        |   |   | 10      |   |   |   | — |   |   |   | 10 |   |
|     Issuance of vested restricted common stock                                                                                                                                                     |   |         | 152,965   |   |              |   | 1       |        |   |   | (1      | )      |   |   | — |   |   |   | — |   |
|     Share-based compensation expense related to        employee stock options and employee        restricted stock grants              |   |         | —   |   |              |   | — |        |   |   | 1,371   |   |   |   | — |   |   |   | 1,371 |   |
|     Share-based compensation expense related to        Employee Stock Purchase Plan                                                                                  |   |         | —   |   |              |   | — |        |   |   | 220     |   |   |   | — |   |   |   | 220 |   |
|     Issuance of common stock under the        Employee Stock Purchase Plan                                                                                           |   |         | 138,499   |   |              |   | 1       |        |   |   | 572     |   |   |   | — |   |   |   | 573 |   |
|     Purchase price consideration issued for        AccessFlow acquisition                                                                                                 |   |         | 50,525    |   |              |   | 1       |        |   |   | 248     |   |   |   | — |   |   |   | 249 |   |
|     Excess tax benefit from stock option exercises                                                                                                                                                 |   |         | —   |   |              |   | — |        |   |   | 611     |   |   |   | — |   |   |   | 611 |   |
|     Issuance of common stock grant                                                                                                                                                                 |   |         | 10,000    |   |              |   | — |        |   |   | 54      |   |   |   | — |   |   |   | 54 |   |
|     Purchase and retirement of stock resulting        from grantee election to fund payroll taxes        out of restricted stock grant |   |         | (42,351   | )      |              |   | — |        |   |   | (204    | )      |   |   | — |   |   |   | (204 | ) |
|     Net income                                                                                                                                                                                     |   |         | —   |   |              |   | — |        |   |   | — |   |   |   | 6,753 |   |   |   | 6,753 |   |
| Balance at September 30, 2010                                                                                                                                                                                          |   |         | 9,420,673 |   |              | $      | 94      |        |   | $      | 57,150  |   |   | $ | (15,628 | ) |   | $ | 41,616 |   |

----

|                                                                                               |   | Nine Months Ended September 30, |    |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                                                               |   | 2010                                 |    |   | 2009 |   |
|                                                                                               |   |                                 |    |   | (As Restated, Note 3) |   |
| Cash flows from operating activities:                                                              |   |                                 |    |   |   |   |
| Net income (loss)                                                                                  |   | $                                    | 6,753   |   |   | $ | (858 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                                 |    |   |   |   |   |   |
| Loss from discontinued operations                                                                  |   |                                 | — |   |   |   | 104 |   |
| Depreciation and amortization                                                                      |   |                                 | 2,135   |   |   |   | 2,310 |   |
| Share-based compensation expense                                                                   |   |                                 | 1,645   |   |   |   | 1,614 |   |
| Impairment charges                                                                                 |   |                                 | 594     |   |   |   | — |   |
| Adjustment to estimated acquisition contingent consideration                                       |   |                                 | (254    | ) |   |   | — |   |
| Deferred income tax                                                                                |   |                                 | (5,745  | ) |   |   | — |   |
| Excess tax benefits from stock option exercises                                                    |   |                                 | (611    | ) |   |   | (66 | ) |
| Provision for doubtful accounts                                                                    |   |                                 | 366     |   |   |   | 260 |   |
| Loss on disposal of property and equipment                                                         |   |                                 | 11      |   |   |   | 35 |   |
| Changes in assets and liabilities that provided (used) cash:                                       |   |                                 |    |   |   |   |   |   |
| Accounts receivable, net                                                                           |   |                                 | (16,550 | ) |   |   | 5,923 |   |
| Inventory                                                                                          |   |                                 | 5,159   |   |   |   | 1,647 |   |
| Accounts payable                                                                                   |   |                                 | 2,290   |   |   |   | 551 |   |
| Other assets and liabilities                                                                       |   |                                 | 4,099   |   |   |   | (167 | ) |
|     Net cash (used in) provided by operating activities                        |   |                                 | (108    | ) |   |   | 11,353 |   |
| Cash flows from investing activities:                                                              |   |                                 |    |   |   |   |   |   |
|    Capital expenditures, net of acquisitions                                        |   |                                 | (1,345  | ) |   |   | (813 | ) |
|    Acquisition of AdvancedNetworX                                                   |   |                                 | — |   |   |   | (465 | ) |
|    Acquisition of NetTeks Technology Consultants, Inc                               |   |                                 | (1,500  | ) |   |   | — |   |
|    Acquisition of Access Flow, Inc.                                                 |   |                                 | (273    | ) |   |   | (209 | ) |
|    Acquisition of Select, Inc.                                                      |   |                                 | — |   |   |   | (25 | ) |
|    Increase in restricted cash for lease deposit                                    |   |                                 | — |   |   |   | (53 | ) |
|    Proceeds from sale of property and equipment                                     |   |                                 | 1       |   |   |   | 8 |   |
|    Net cash used in investing activities                                            |   |                                 | (3,117  | ) |   |   | (1,557 | ) |
| Cash flows from financing activities:                                                              |   |                                 |    |   |   |   |   |   |
|    Borrowings (payments) under non-interest bearing floor plan financing, net       |   |                                 | 686     |   |   |   | (8,708 | ) |
|    Excess tax benefits from stock option exercises                                  |   |                                 | 611     |   |   |   | 66 |   |
|    Proceeds from shares issued under Employee Stock Purchase Plan                   |   |                                 | 573     |   |   |   | 326 |   |
|    Payments on other borrowings                                                     |   |                                 | (152    | ) |   |   | (197 | ) |
|    Purchase of stock resulting from grantee election                                |   |                                 | (204    | ) |   |   | (60 | ) |
|    Proceeds from exercise of stock options                                          |   |                                 | 10      |   |   |   | 22 |   |
|    Purchase of common stock                                                         |   |                                 | — |   |   |   | (66 | ) |
|    Net cash provided by (used in) financing activities                              |   |                                 | 1,524   |   |   |   | (8,617 | ) |
| Net (decrease) increase in cash and cash equivalents                                               |   |                                 | (1,701  | ) |   |   | 1,179 |   |
| Cash and cash equivalents at beginning of period                                                   |   |                                 | 13,247  |   |   |   | 10,937 |   |
| Cash and cash equivalents at end of period                                                         |   | $                                    | 11,546  |   |   | $ | 12,116 |   |

| Supplemental disclosure of cash flow information:            |   |   |    |   |   |   |
|--------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                         |   |   |    |   |   |   |
| Issuance of vested restricted common stock                   |   | $      | 842     |   |   | $      | 579 |   |
| Acquisition of Access Flow                                   |   | $      | 249     |   |   | $      | 185 |   |
|     Acquisition of AdvancedNetworX, Inc. |   | $      | — |   |   | $      | 677 |   |
|     Capital lease obligation                  |   | $      | — |   |   | $      | 297 |   |

----

|   | 1. | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|
|   | a. | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts,      |

----

|   | b. | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | c. | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |

|   | 2. | Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”), |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3. | Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and                                                         |

|   | 4. | Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                | AsPreviouslyReported |        |   | 00-21 Adjustments |   |      | SpecialAcceptance Terms |   |   | Shipping Terms |    |   | Net Presentation |       |    | AsRestated |   |
|-------------------------------------------------------------------------------------|----------------------|-------------|--------|------------------------|--------|-----------|------------------------------|--------|--------|---------------------|---------|--------|-----------------------|------------|---------|------------|--------|
| Revenue:                                                                            |                 |        |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |
|     Products                                                    | $                    | 46,813      |   |                   | $      | 454       |                         |   | $      | (1                  | )       |   | $                     | (81        | )       |       | $      | (608 | ) |   | $ | 46,577 |   |
|     Services                                                    |                 | 11,046      |   |                   |   | 113       |                         |   |   | 7                   |    |   |                  | —    |    |       |   | — |   |   |   | 11,166 |   |
| Total revenue                                                                       |                 | 57,859      |   |                   |   | 567       |                         |   |   | 6                   |    |   |                  | (81        | )       |       |   | (608 | ) |   |   | 57,743 |   |
| Cost of products and services:                                                      |                 |        |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   |   |   |
|     Products                                                    |                 | 36,620      |   |                   |   | 329       |                         |   |   | —             |    |   |                  | 53         |    |       |   | (608 | ) |   |   | 36,394 |   |
|     Services                                                    |                 | 8,272       |   |                   |   | 75        |                         |   |   | (31                 | )  |   |                  | 2          |    |       |   | — |   |   |   | 8,318 |   |
| Total cost of products and services                                                 |                 | 44,892      |   |                   |   | 404       |                         |   |   | (31                 | )  |   |                  | 55         |    |       |   | (608 | ) |   |   | 44,712 |   |
| Total gross profit                                                                  |                 | 12,967      |   |                   |   | 163  |                         |   |   | 37                  |    |   |                  | (136  | )       |       |   | — |   |   |   | 13,031 |   |
| Selling, general and administrative expenses                                   |                 | 13,284      |   |                   |   | 2         |                         |   |   | (7                  | )       |   |                  | (30        | )       |       |   | — |   |   |   | 13,249 |   |
|     Operating income (loss)                                |                 | (317        | )      |                   |   | 161       |                         |   |   | 44                  |    |   |                  | (106       | )       |       |   | — |   |   |   | (218 | ) |
| Interest and other income (expense), net                                       |                 | 83          |   |                   |   | —   |                         |   |   | —             |    |   |                  | —    |    |       |   | — |   |   |   | 83 |   |
|     Income (loss) before income taxes                      |                 | (234        | )      |                   |   | 161       |                         |   |   | 44                  |    |   |                  | (106       | )  |       |   | — |   |   |   | (135 | ) |
| Income tax expense (benefit)                                                   |                 | 93          |   |                   |   | (44       | )                            |   |   | (12                 | )       |   |                  | 29         |    |       |   | — |   |   |   | 66 |   |
|     Net income (loss) from continuing operations |                 | (327        | )      |                   |   | 205       |                         |   |   | 56                  |    |   |                  | (135       | )       |       |   | —  |   |   |   | (201 | ) |
| Income (loss) from discontinued operations, net of taxes                  |                 | (48         | )      |                   |   | —   |                         |   |   | —             |    |   |                  | —    |    |       |   | — |   |   |   | (48 | )  |
|     Net income (loss)                                           | $                    | (375        | )      |                   | $      | 205       |                         |   | $      | 56                  |    |   | $                     | (135       | )       |       | $      | — |   |   | $ | (249 | ) |
| Basic net loss per share:                                                           |                 |        |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         | $                    | (0.04       | )      |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   | $ | (0.02 | ) |
|     Loss from discontinued operations, net of taxes             |                 | —     |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   | (0.01 | ) |
|     Net loss per share – basic                            | $                    | (0.04  | )      |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   | $ |  (0.03 | ) |
| Diluted net loss per share:                                                         |                 |        |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         | $                    | (0.04       | )      |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   | $ | (0.02 | ) |
|     Loss from discontinued operations, net of taxes             |                 | —     |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   | (0.01 | ) |
|     Net loss per share – diluted                          | $                    | (0.04       | )      |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   | $ | (0.03 | ) |
| Weighted average shares outstanding -basic                                          |                 | 8,927,549   |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   | 8,927,549 |   |
| Weighted average shares outstanding - diluted                                       |                 | 8,927,549   |   |                   |   |      |                         |   |   |                |    |   |                  |       |    |       |   |   |   |   |   | 8,927,549 |   |

----

|                                                                                | AsPreviouslyReported |        |   | 00-21 Adjustments |   |    | SpecialAcceptance Terms |   |   | Shipping Terms |    |   | Net Presentation |     |   | AsRestated |   |
|-------------------------------------------------------------------------------------|----------------------|-------------|--------|------------------------|--------|---------|------------------------------|--------|--------|---------------------|---------|--------|-----------------------|----------|--------|------------|--------|
| Revenue:                                                                            |                 |        |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |
|     Products                                                    | $                    | 137,834     |   |                   | $      | (834    | )                            |   | $      | (1,799              | )       |   | $                     | 761      |   |       | $      | (1,334 | ) |   | $ | 134,628 |   |
|     Services                                                    |                 | 35,706      |   |                   |   | (48     | )                            |   |   | (427                | )       |   |                  | —  |   |       |   | — |   |   |   | 35,231 |   |
| Total revenue                                                                       |                 | 173,540     |   |                   |   | (882    | )                            |   |   | (2,226              | )       |   |                  | 761      |   |       |   | (1,334 | ) |   |   | 169,859 |   |
| Cost of products and services:                                                      |                 |        |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   |   |   |
|     Products                                                    |                 | 109,619     |   |                   |   | (543    | )                       |   |   | (1,519              | )  |   |                  | 759      |   |       |   | (1,334 | )  |   |   | 106,982 |   |
|     Services                                                    |                 | 25,926      |   |                   |   | (30     | )                       |   |   | (472                | )  |   |                  | 7        |   |       |   | — |   |   |   | 25,431 |   |
| Total cost of products and services                                                 |                 | 135,545     |   |                   |   | (573    | )                       |   |   | (1,991              | )  |   |                  | 766      |   |       |   | (1,334 | )  |   |   | 132,413 |   |
| Total gross profit                                                                  |                 | 37,995      |   |                   |   | (309    | )                            |   |   | (235           | )       |   |                  | (5  | )      |       |   | —  |   |   |   | 37,446 |   |
| Selling, general and administrative expenses                                   |                 | 38,337      |   |                   |   | (42     | )                            |   |   | (40                 | )       |   |                  | (21      | )      |       |   | — |   |   |   | 38,234 |   |
|     Operating income (loss)                                |                 | (342        | )      |                   |   | (267    | )                            |   |   | (195                | )       |   |                  | 16       |   |       |   | — |   |   |   | (788 | ) |
| Interest and other income (expense), net                                  |                 | 100         |   |                   |   | — |                         |   |   | —             |    |   |                  | —  |   |       |   | — |   |   |   | 100 |   |
|     Income (loss) before income taxes                 |                 | (242        | )      |                   |   | (267    | )                       |   |   | (195                | )  |   |                  | 16       |   |       |   | — |   |   |   | (688 | ) |
| Income tax expense (benefit)                                                   |                 | 212         |   |                   |   | (124    | )                            |   |   | (70                 | )       |   |                  | 48       |   |       |   | — |   |   |   | 66 |   |
|     Net income (loss) from continuing operations |                 | (454        | )      |                   |   | (143    | )                       |   |   | (125                | )  |   |                  | (32      | )      |       |   | — |   |   |   | (754 | ) |
| Income (loss) from discontinued operations, net of taxes             |                 | (104        | )      |                   |   | — |                         |   |   | —             |    |   |                  | —  |   |       |   | — |   |   |   | (104 | )  |
|     Net income (loss)                                           | $                    | (558        | )      |                   | $      | (143    | )                            |   | $      | (125                | )       |   | $                     | (32      | )      |       | $      | — |   |   | $ | (858 | ) |
| Basic net loss per share:                                                           |                 |        |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         | $                    | (0.05       | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |                 | (0.01       | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   | (0.01 | ) |
|     Net loss per share – basic                            | $                    | (0.06  | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   | $ | (0.10  | ) |
| Diluted net loss per share:                                                         |                 |        |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   |   |   |
|     Net loss from continuing operations                         | $                    | (0.05       | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   | $ | (0.09 | ) |
|     Loss from discontinued operations, net of taxes             |                 | (0.01       | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   | (0.01 | ) |
|     Net loss per share – diluted                          | $                    | (0.06  | )      |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   | $ | (0.10  | ) |
|                                                                                |                 |        |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   |   |   |
| Weighted average shares outstanding -basic                                          |                 | 8,818,793   |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   | 8,818,793 |   |
| Weighted average shares outstanding - diluted                                       |                 | 8,818,793   |   |                   |   |    |                         |   |   |                |    |   |                  |     |   |       |   |   |   |   |   | 8,818,793 |   |

----

|                                             | As PreviouslyReported |    | Revenue Corrections |   |    | Goodwill Correction |   |   | As Restated |   |
|--------------------------------------------------|-----------------------|---------|--------------------------|--------|---------|---------------------|--------|--------|-------------|--------|
| Current assets:                                  |                  |    |                     |   |    |                |   |   |        |   |
| Cash and cash equivalents                        | $                     | 12,116  |                     | $      | — |                |   | $      | —     |   |   | $ | 12,116 |   |
| Accounts receivable, net                         |                  | 45,807  |                     |   | (296    | )                   |   |   | —     |   |   |   | 45,511 |   |
| Inventory, net                                   |                  | 1,681   |                     |   | 282     |                |   |   | —     |   |   |   | 1,963 |   |
| Deferred costs                                   |                  | 345     |                     |   | 728     |                |   |   | —     |   |   |   | 1,073 |   |
| Other current assets                             |                  | 1,063   |                     |   | — |                |   |   | —     |   |   |   | 1,063 |   |
| Total current assets                             |                  | 61,012  |                     |   | 714     |                |   |   | —     |   |   |   | 61,726 |   |
| Property and equipment, net                      |                  | 4,576   |                     |   | — |                |   |   | —     |   |   |   | 4,576 |   |
| Goodwill                                         |                  | 14,085  |                     |   | — |                |   |   | —     |   |   |   | 14,085 |   |
| Intangible and other assets, net                 |                  | 1,476   |                     |   | — |                |   |   | —     |   |   |   | 1,476 |   |
| Total assets                                     | $                     | 81,149  |                     | $      | 714     |                |   | $      | —     |   |   | $ | 81,863 |   |
|                                             |                  |    |                     |   |    |                |   |   |        |   |   |   |   |   |
| Current liabilities:                             |                  |    |                     |   |    |                |   |   |        |   |   |   |   |   |
| Current portion of capital lease obligations     | $                     | 198     |                     | $      | — |                |   | $      | —     |   |   | $ | 198 |   |
| Accounts payable floor plan                      |                  | 31,294  |                     |   | — |                |   |   | —     |   |   |   | 31,294 |   |
| Accounts payable                                 |                  | 5,721   |                     |   | — |                |   |   | —     |   |   |   | 5,721 |   |
| Accrued payroll and related costs                |                  | 5,114   |                     |   | (37     | )                   |   |   | —     |   |   |   | 5,077 |   |
| Accrued expenses                                 |                  | 1,796   |                     |   | — |                |   |   | —     |   |   |   | 1,796 |   |
| Deferred revenue                                 |                  | 763     |                     |   | 1,317   |                |   |   | —     |   |   |   | 2,080 |   |
| Other current liabilities                        |                  | 279     |                     |   | (146    | )                   |   |   | —     |   |   |   | 133 |   |
| Total current liabilities                        |                  | 45,165  |                     |   | 1,134   |                |   |   | —     |   |   |   | 46,299 |   |
| Non-current liabilities:                         |                  |    |                     |   |    |                |   |   |        |   |   |   |   |   |
| Non-current portion of capital lease obligations |                  | 267     |                     |   | — |                |   |   | —     |   |   |   | 267 |   |
| Other liabilities                                |                  | 608     |                     |   | — |                |   |   | —     |   |   |   | 608 |   |
| Total liabilities                                |                  | 46,040  |                     |   | 1,134   |                |   |   | —     |   |   |   | 47,174 |   |
| Stockholders’ equity:                      |                  |    |                     |   |    |                |   |   |        |   |   |   |   |   |
| Common stock                                     |                  | 89      |                     |   | — |                |   |   | —     |   |   |   | 89 |   |
| Additional paid-in capital                       |                  | 52,837  |                     |   | (55     | )                   |   |   | 672         |   |   |   | 53,454 |   |
| Accumulated deficit                              |                  | (17,817 | )                        |   | (365    | )                   |   |   | (672        | )      |   |   | (18,854 | ) |
| Total stockholders’ equity                 |                  | 35,109  |                     |   | (420    | )                   |   |   | —     |   |   |   | 34,689 |   |
| Total liabilities and stockholders’ equity | $                     | 81,149  |                     | $      | 714     |                |   | $      | —     |   |   | $ | 81,863 |   |

----

|                                                                                                          |   | As PreviouslyReported |   |   | TotalRevenue Corrections |    |   | As Restated |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|---------|--------|------------------|--------|
| Cash flows from operating activities:                                                                         |   |                       |   |   |                     |    |   |             |   |
| Net loss                                                                                                      | $      | (558                       | )      |   | $                        | (300    | )      |             | $      | (858 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                                   |   |                       |   |   |                     |    |   |             |   |   |   |
|       Loss from discontinued operations                                         |   | 104                        |   |   |                     | — |   |             |   | 104 |   |
|       Depreciation and amortization                                             |   | 2,310                      |   |   |                     | — |   |             |   | 2,310 |   |
|       Share-based compensation expense                                          |   | 1,614                      |   |   |                     | — |   |             |   | 1,614 |   |
|       Excess tax benefits from stock option exercises                           |   | (66                        | )      |   |                     | — |   |             |   | (66 | ) |
|       Loss on disposal of property and equipment                                |   | 35                         |   |   |                     | — |   |             |   | 35 |   |
|       Provision for doubtful accounts                                           |   | 260                        |   |   |                     | — |   |             |   | 260 |   |
| Changes in operating assets and liabilities, net of effect of acquisitions:                                   |   |                       |   |   |                     |    |   |             |   |   |   |
|       Accounts receivable, net                                                  |   | 6,799                      |   |   |                     | (876    | )      |             |   | 5,923 |   |
|       Inventory                                                                 |   | 725                        |   |   |                     | 922     |   |             |   | 1,647 |   |
|       Accounts payable                                                          |   | 551                        |   |   |                     | — |   |             |   | 551 |   |
|       Other assets and liabilities                                              |   | (421                       | )      |   |                     | 254     |   |             |   | (167 | ) |
|     Net cash provided by operating activities                                             |   | 11,353                     |   |   |                     | — |   |             |   | 11,353 |   |
| Cash flows from investing activities:                                                                         |   |                       |   |   |                     |    |   |             |   |   |   |
|       Acquisition of AdvancedNetworkX, Inc.                                     |   | (465                       | )      |   |                     | — |   |             |   | (465 | ) |
|       Acquisition of Access Flow, Inc.                                          |   | (209                       | )      |   |                     | — |   |             |   | (209 | ) |
|       Acquisition of Select, Inc.                                               |   | (25                        | )      |   |                     | — |   |             |   | (25 | ) |
|       Proceeds from sales of property and equipment                             |   | 8                          |   |   |                     | — |   |             |   | 8 |   |
|       Increase in restricted cash for lease deposit                             |   | (53                        | )      |   |                     | — |   |             |   | (53 | ) |
|       Capital expenditures                                                      |   | (813                       | )      |   |                     | — |   |             |   | (813 | ) |
|             Net cash used in investing activities |   | (1,557                     | )      |   |                     | — |   |             |   | (1,557 | ) |
| Cash flows from financing activities:                                                                         |   |                       |   |   |                     |    |   |             |   |   |   |
|       Payments under non-interest bearing floor plan financing, net             |   | (8,708                     | )      |   |                     | — |   |             |   | (8,708 | ) |
|       Proceeds from shares issued under Employee Stock Purchase Plan            |   | 326                        |   |   |                     | — |   |             |   | 326 |   |
|       Exercise of stock options                                                 |   | 22                         |   |   |                     | — |   |             |   | 22 |   |
|       Excess tax benefits from stock option exercises                           |   | 66                         |   |   |                     | — |   |             |   | 66 |   |
|       Purchase of common stock                                                  |   | (66                        | )      |   |                     | — |   |             |   | (66 | ) |
|       Purchase of stock resulting from grantee election                         |   | (60                        | )      |   |                     | — |   |             |   | (60 | ) |
|       Payments on notes payable and capital lease obligations                   |   | (197                       | )      |   |                     | — |   |             |   | (197 | ) |
|            Net cash used in financing activities       |   | (8,617                     | )      |   |                     | — |   |             |   | (8,617 | ) |
| Net increase in cash and cash equivalents                                                                     |   | 1,179                      |   |   |                     | — |   |             |   | 1,179 |   |
| Cash and cash equivalents at beginning of period                                                              |   | 10,937                     |   |   |                     | — |   |             |   | 10,937 |   |
| Cash and cash equivalents at end of period                                                                    | $      | 12,116                     |   |   | $                        | — |   |             | $      | 12,116 |   |

----

| (a) | Marketware Inc. |
|-----|-----------------|

----

| (b) | AdvancedNetworX, Inc. |
|-----|-----------------------|

| (c) | Acquisitions Summary |
|-----|----------------------|

|                                                               |   | Marketware |    |   | ANX    |   |
|--------------------------------------------------------------------|--------|------------|---------|--------|--------|--------|
| Allocated acquisition cost:                                        |   |       |    |   |   |   |
|    Intangible assets                                |   | $          | 491     |   |   | $      | 299 |   |
|    Inventory                                        |   |       | 9       |   |   |   | — |   |
|    Property and equipment                           |   |       | 79      |   |   |   | 59 |   |
|    Other assets                                     |   |       | 50      |   |   |   | — |   |
|    Goodwill                                         |   |       | 665     |   |   |   | 784 |   |
|    Current portion of capital lease obligations     |   |       | — |   |   |   | (15 | ) |
|    Accrued expenses                                 |   |       | (7      | )      |   |   | — |   |
|    Deferred revenue                                 |   |       | (5      | )      |   |   | (156 | ) |
|    Other current liabilities                        |   |       | (17     | )      |   |   | — |   |
|    Non-current portion of capital lease obligations |   |       | — |   |   |   | (19 | ) |
|    Other liabilities                                |   |       | (831    | )      |   |   | (477 | ) |
| Net assets acquired                                                |   | $          | 434     |   |   | $      | 475 |   |
|                                                               |   |       |    |   |   |   |   |   |
| Amount of goodwill deductible for U.S. Federal income tax purposes |   | $          | — |   |   | $      | 39 |   |

----

|                                         |   | Three Months Ended September 30,  2009(As restated) |      |   | Nine Months Ended September 30, 2009(As restated) |   |
|----------------------------------------------|--------|-------------------------------------------------------------------------|-----------|--------|-------------------------------------------------------------|--------|
| Revenues                                     |   | $                                                                       | 59,002    |   |                                                        | $      | 176,126 |   |
| Net loss                                     |   | $                                                                       | (409      | )      |                                                        | $      | (1,606 | ) |
| Net loss per share:                          |   |                                                                    |      |   |                                                        |   |   |   |
| Basic                                        |   | $                                                                       | (0.05     | )      |                                                        | $      | (0.18 | ) |
| Diluted                                      |   | $                                                                       | (0.05     | )      |                                                        | $      | (0.18 | ) |
| Weighted average shares used in calculation: |   |                                                                    |      |   |                                                        |   |   |   |
| Basic                                        |   |                                                                    | 8,927,893 |   |                                                        |   | 8,820,241 |   |
| Diluted                                      |   |                                                                    | 8,927,893 |   |                                                        |   | 8,820,241 |   |

| (d) | Goodwill Impairment |
|-----|---------------------|

|                                                                                                                                  |   | Three Months Ended September 30, |      |   | Nine Months Ended September 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------|--------|
|                                                                                                                                  |   | 2010                                  |      |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Numerator for basic and diluted earnings per share:                                                                                   |   |                                  |      |   |                                 |   |   |   |   |   |   |   |
| Net income(loss) from continuing operations                                                                                           |   | $                                     | 927       |   |                                 | $      | (201 | ) |   | $ | 6,753 |   |   | $ | (754 | ) |
| Loss on disposal of discontinued operations, net of income taxes                                                                      |   |                                  | —   |   |                                 |   | (48 | ) |   |   | — |   |   |   | (104 | ) |
| Net income (loss)                                                                                                                     |   | $                                     | 927       |   |                                 | $      | (249 | ) |   | $ | 6,753 |   |   | $ | (858 | ) |
|                                                                                                                                  |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Denominator for basic earnings per share — weighted-average shares outstanding                                                  |   |                                  |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities — shares issuable from assumed conversion of common stock options, restricted stock, and warrants |   |                                  | 9,294,873 |   |                                 |   | 8,927,549 |   |   |   | 9,201,862 |   |   |   | 8,818,793 |   |
| Denominator for diluted earnings per share — weighted-average shares outstanding                                                |   |                                  | 585,979   |   |                                 |   | — |   |   |   | 596,278 |   |   |   | — |   |
| Denominator for basic earnings per share — weighted-average shares outstanding                                                  |   |                                  | 9,880,852 |   |                                 |   | 8,927,549 |   |   |   | 9,798,140 |   |   |   | 8,818,793 |   |

----

|                                            |   | Three Months EndedSeptember 30, |    |   | Nine Months EndedSeptember 30, |   |
|-------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                            |   | 2010                            |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Warrants                                        |   |                            | 40,000  |   |                           |   | 40,000 |   |   |   | 40,000 |   |   |   | 40,000 |   |
| Stock options                                   |   |                            | 541,568 |   |                           |   | 519,618 |   |   |   | 560,468 |   |   |   | 550,518 |   |
| Contingent Shares                               |   |                            | — |   |                           |   | — |   |   |   | — |   |   |   | — |   |
| Restricted stock                                |   |                            | — |   |                           |   | 621,249 |   |   |   | — |   |   |   | 511,798 |   |
| ESPP                                            |   |                            | — |   |                           |   | 8,972 |   |   |   |   |   |   |   | 2,991 |   |
| Weighted-average shares considered antidilutive |   |                            | 581,568 |   |                           |   | 1,189,839 |   |   |   | 600,468 |   |   |   | 1,105,307 |   |

----

----

|                                                                         |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total fair value |   |
|------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|------------------|--------|
| Estimated Contingent Consideration:                                          |   |    |    |   |    |   |    |    |   |   |             |   |
|     Balance at December 31, 2009                         |   | $       | — |   |    | $      | — |    |   | $      | 1,411            |   |   | $ | 1,411 |   |
|          Adjustment of estimate |   |    | — |   |    |   | — |    |   |   | (254             | )      |   |   | (254 | ) |
|     Balance at September 30, 2010                        |   | $       | — |   |    | $      | — |    |   | $      | 1,157            |   |   | $ | 1,157 |   |

|                                                            |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total Fair Value |   |
|-----------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|------------------|--------|
| Estimated Contingent Consideration:                             |   |    |    |   |    |   |    |    |   |   |             |   |
|     Balance at December 31, 2008            |   | $       | — |   |    | $      | — |    |   | $      | —          |   |   | $ | — |   |
|          Additions |   |    | — |   |    |   | — |    |   |   | 477              |   |   |   | 477 |   |
|     Balance at September 30, 2009           |   | $       | — |   |    | $      | — |    |   | $      | 477              |   |   | $ | 477 |   |

|                                                |   | Fair Value Measurements Using |   |
|-----------------------------------------------------|--------|-------------------------------|--------|
|                                                |   | Nine Months Ended September   |   |   | Quoted Prices in Active Markets for Identical Assets |   |   | Significant Other Observable Inputs |   |   | Significant Unobservable Inputs |   |   | Total Gains |   |
| Description                                         |   | 30, 2010                      |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |   | (Losses) |   |
|                                                |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Goodwill                    |   | $                             | 13,798 |   |   | $ | — |   |   | $ | — |   |   | $ | 13,798 |   |   | $ | (594 | ) |
|     Intangible assets, net      |   |                          | 1,201  |   |   |   | — |   |   |   | — |   |   |   | 1,201 |   |   |   | — |   |
|     Property and equipment, net |   |                          | 4,590  |   |   |   | — |   |   |   | — |   |   |   | 4,590 |   |   |   | — |   |
|     Total                       |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (594 | ) |

----

|   | 1. | Application of EITF 00-21, affecting the timing and presentation of revenue recognized (“00-21 Adjustments”) for the: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | a  | Proper determination of contracts to which EITF 00-21 was applicable and the related units of accounting for such contracts,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | b. | Proper determination of linkage between contracts, reflecting aggregation of single contracts into multiple element arrangements since they were negotiated as a package, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | c. | Proper assessment of whether or not the Company had vendor specific objective evidence (“VSOE”) of the fair value of the various deliverables within arrangements containing multiple deliverables, as well as (i) the timing of revenue recognition based upon the relative fair value of the deliverables within the arrangement for deliverables for which we are able to establish the fair value. (ii) the allocation of the total arrangement consideration between the various elements of the arrangement based upon the relative fair value of the deliverables within the arrangement for multi-element arrangements, and, (iii) the deferral of revenue for the entire arrangement in situations where the arrangement contained remaining undelivered deliverables for which we are not able to establish the fair value. |

|   | 2. | Identification of customer contracts with special customer acceptance terms which require deferral of revenues and related costs of revenues and commissions until customer acceptance was obtained (“Special Acceptance Terms”), |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3. | Identification of contract shipping terms resulting in the incorrect timing of recognition of revenues and related costs of sales and commissions (“Shipping Terms”), and                                                         |

|   | 4. | Identification of products that are maintenance, support, and installation services provided by third parties as the primary obligor of the service, which requires presentation of the revenue reported by the Company net of the cost of the services provided by the third party (“Net Presentation”). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                  | 00-21 Adjustments |    |    | Special Acceptance Terms |   |    | Shipping Terms |   |   | Net Presentation |    |   | TotalRestatement |    |
|-------------------------------------------------------|-------------------|---------|---------|--------------------------|--------|---------|----------------|--------|--------|------------------|---------|--------|------------------|---------|
| Revenue:                                              |              |    |    |                     |   |    |           |   |   |             |    |   |             |    |
|    Products                            | $                 | 454     |    |                     | $      | (1      | )              |   | $      | (81              | )       |   | $                | (608    | ) |   | $ | (236 | ) |
|    Services                            |              | 113     |    |                     |   | 7       |           |   |   | —          |    |   |             | — |   |   |   | 120 |   |
|    Total revenue                       |              | 567     |    |                     |   | 6       |           |   |   | (81              | )       |   |             | (608    | ) |   |   | (116 | ) |
| Cost of products and services:                        |              |    |    |                     |   |    |           |   |   |             |    |   |             |    |   |   |   |   |   |
|    Products                            |              | 329     |    |                     |   | — |           |   |   | 53               |    |   |             | (608    | ) |   |   | (226 | )  |
|    Services                            |              | 75      |    |                     |   | (31     | )         |   |   | 2                |    |   |             | — |   |   |   | 46 |   |
|    Total cost of products and services |              | 404     |    |                     |   | (31     | )         |   |   | 55               |    |   |             | (608    | ) |   |   | (180 | ) |
| Gross Profit:                                         |              |    |    |                     |   |    |           |   |   |             |    |   |             |    |   |   |   |   |   |
|    Products                            |              | 125     |    |                     |   | (1      | )              |   |   | (134             | )       |   |             | — |   |   |   | (10 | ) |
|    Services                            |              | 38      |    |                     |   | 38      |           |   |   | (2)              |    |   |             | — |   |   |   | 74 |   |
|    Total gross profit                  |              | 163     |    |                     |   | 37      |           |   |   | (136             | )       |   |             | — |   |   |   | 64 |   |
| Selling, general and administrative expenses          |              | 2       |    |                     |   | (7      | )         |   |   | (30              | )  |   |             | — |   |   |   | (35 | )  |
| Operating income (loss)                               |              | 161     |    |                     |   | 44      |           |   |   | (106             | )       |   |             | — |   |   |   | 99 |   |
| Income tax expense (benefit)                          |              | (44     | )  |                     |   | (12     | )              |   |   | 29               |    |   |             | — |   |   |   | (27 | )  |
| Net income (loss) from continuing operations          |              | 205     |    |                     |   | 56      |           |   |   | (135             | )       |   |             | — |   |   |   | 126 |   |
| Loss from discontinued operations                     |              | — |    |                     |   | — |           |   |   | —          |    |   |             | — |   |   |   | — |   |
| Net income (loss)                                     | $                 | 205     |    |                     | $      | 56      |           |   | $      | (135             | )       |   | $                | — |   |   | $ | 126 |   |

----

|                                                        | 00-21 Adjustments |    |   | Special Acceptance Terms |   |    | Shipping Terms |   |   | Net Presentation |   |   | TotalRestatement |    |
|-------------------------------------------------------------|-------------------|---------|--------|--------------------------|--------|---------|----------------|--------|--------|------------------|--------|--------|------------------|---------|
| Revenue:                                                    |              |    |   |                     |   |    |           |   |   |             |   |   |             |    |
|     Products                            | $                 | (834    | )      |                     | $      | (1,799  | )              |   | $      | 761              |   |   | $                | (1,334  | ) |   | $ | (3,206 | ) |
|     Services                            |              | (48     | )      |                     |   | (427    | )              |   |   | —          |   |   |             | — |   |   |   | (475 | ) |
|     Total revenue                       |              | (882    | )      |                     |   | (2,226  | )              |   |   | 761              |   |   |             | (1,334  | ) |   |   | (3,681 | ) |
| Cost of products and services:                              |              |    |   |                     |   |    |           |   |   |             |   |   |             |    |   |   |   |   |   |
|     Products                            |              | (543    | )      |                     |   | (1,519  | )              |   |   | 759              |   |   |             | (1,334  | ) |   |   | (2,637 | ) |
|     Services                            |              | (30     | )      |                     |   | (472    | )              |   |   | 7                |   |   |             | — |   |   |   | (495 | ) |
|     Total cost of products and services |              | (573    | )      |                     |   | (1,991  | )              |   |   | 766              |   |   |             | (1,334  | ) |   |   | (3,132 | ) |
| Gross Profit:                                               |              |    |   |                     |   |    |           |   |   |             |   |   |             |    |   |   |   |   |   |
|     Products                            |              | (291    | )      |                     |   | (280    | )              |   |   | 2                |   |   |             | — |   |   |   | (569 | ) |
|     Services                            |              | (18     | )      |                     |   | 45      |           |   |   | (7               | )      |   |             | — |   |   |   | 20 |   |
|     Total gross profit                  |              | (309    | )      |                     |   | (235    | )              |   |   | (5               | )      |   |             | — |   |   |   | (549 | ) |
| Selling, general and administrative expenses                |              | (42     | )      |                     |   | (40     | )              |   |   | (21              | )      |   |             | — |   |   |   | (103 | ) |
| Operating income (loss)                                     |              | (267    | )      |                     |   | (195    | )              |   |   | 16               |   |   |             | — |   |   |   | (446 | ) |
| Income tax expense (benefit)                                |              | (124    | )      |                     |   | (70     | )              |   |   | 48               |   |   |             | — |   |   |   | (146 | ) |
| Net income (loss) from continuing operations                |              | (143    | )      |                     |   | (125    | )              |   |   | (32              | )      |   |             | — |   |   |   | (300 | ) |
| Loss from discontinued operations                           |              | — |   |                     |   | — |           |   |   | —          |   |   |             | — |   |   |   | — |   |
| Net income (loss)                                           | $                 | (143    | )      |                     | $      | (125    | )              |   | $      | (32              | )      |   | $                | — |   |   | $ | (300 | ) |

|                                            |   | Three Months Ended September 30, |    |
|-------------------------------------------------|--------|----------------------------------|---------|
|                                            |   | 2010                             |    |   | 2009 (As Restated) |   |   | 2009 (As Previously Reported) |   |
|                                            |   | Amount                           |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Revenue:                                        |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                        |   | $                                | 74,027  |   |   |   | 87.2 |   |   | $ | 46,577 |   |   |   | 80.7 |   |   | $ | 46,813 |   |   |   | 80.9 |   |
| Services                                        |   |                             | 10,886  |   |   |   | 12.8 |   |   |   | 11,166 |   |   |   | 19.3 |   |   |   | 11,046 |   |   |   | 19.1 |   |
| Total revenue                                   |   |                             | 84,913  |   |   |   | 100.0 |   |   |   | 57,743 |   |   |   | 100.0 |   |   |   | 57,859 |   |   |   | 100.0 |   |
| Gross profit:                                   |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                        |   |                             | 16,672  |   |   |   | 22.5 |   |   |   | 10,183 |   |   |   | 21.9 |   |   |   | 10,193 |   |   |   | 21.8 |   |
| Services                                        |   |                             | 2,479   |   |   |   | 22.8 |   |   |   | 2,848 |   |   |   | 25.5 |   |   |   | 2,774 |   |   |   | 25.1 |   |
| Total gross profit                              |   |                             | 19,151  |   |   |   | 22.6 |   |   |   | 13,031 |   |   |   | 22.6 |   |   |   | 12,967 |   |   |   | 22.4 |   |
| Selling, general and administrative expenses    |   |                             | 17,392  |   |   |   | 20.5 |   |   |   | 13,249 |   |   |   | 23.0 |   |   |   | 13,284 |   |   |   | 22.9 |   |
| Operating income                                |   |                             | 1,759   |   |   |   | 2.1 |   |   |   | (218 | ) |   |   | (0.4 | ) |   |   | (317 | ) |   |   | (0.5 | ) |
| Interest and other income, net                  |   |                             | (12     | ) |   |   | — |   |   |   | 83 |   |   |   | 0.2 |   |   |   | 83 |   |   |   | 0.1 |   |
| Income tax expense                              |   |                             | 820     |   |   |   | 1.0 |   |   |   | 66 |   |   |   | 0.1 |   |   |   | 93 |   |   |   | 0.2 |   |
| Net income from continuing operations           |   |                             | 927     |   |   |   | 1.1 |   |   |   | (201 | ) |   |   | (0.3 | ) |   |   | (327 | ) |   |   | (0.6 | ) |
| Loss from discontinued operations, net of taxes |   |                             | — |   |   |   | — |   |   |   | (48 | ) |   |   | (0.1 | ) |   |   | (48 | ) |   |   | — |   |
| Net income                                      |   | $                                | 927     |   |   |   | 1.1 |   |   | $ | (249 | ) |   |   | (0.4 | ) |   | $ | (375 | ) |   |   | (0.6 | ) |

----

|                                                     |   | Nine Months Ended September 30, |    |
|----------------------------------------------------------|--------|---------------------------------|---------|
|                                                     |   | 2010                            |    |   | 2009 (As Restated) |   |   | 2009 (As Previously Reported) |   |
|                                                     |   | Amount                          |    |   | % |   |   | Amount |   |   | % |   |   | Amount |   |   | % |   |
| Revenue:                                                 |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                                 |   | $                               | 209,191 |   |   |   | 87.5 |   |   | $ | 134,628 |   |   |   | 79.3 |   |   | $ | 137,834 |   |   |   | 79.4 |   |
| Services                                                 |   |                            | 29,825  |   |   |   | 12.5 |   |   |   | 35,231 |   |   |   | 20.7 |   |   |   | 35,706 |   |   |   | 20.6 |   |
| Total revenue                                            |   |                            | 239,016 |   |   |   | 100.0 |   |   |   | 169,859 |   |   |   | 100.0 |   |   |   | 173,540 |   |   |   | 100.0 |   |
| Gross profit:                                            |   |                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Products                                                 |   |                            | 42,670  |   |   |   | 20.4 |   |   |   | 27,646 |   |   |   | 20.5 |   |   |   | 28,215 |   |   |   | 20.5 |   |
| Services                                                 |   |                            | 6,082   |   |   |   | 20.4 |   |   |   | 9,800 |   |   |   | 27.8 |   |   |   | 9,780 |   |   |   | 27.4 |   |
| Total gross profit                                       |   |                            | 48,752  |   |   |   | 20.4 |   |   |   | 37,446 |   |   |   | 22.0 |   |   |   | 37,995 |   |   |   | 21.9 |   |
| Selling, general and administrative expenses             |   |                            | 46,510  |   |   |   | 19.5 |   |   |   | 38,234 |   |   |   | 22.5 |   |   |   | 38,337 |   |   |   | 22.1 |   |
| Operating (loss) income                                  |   |                            | 2,242   |   |   |   | 0.9 |   |   |   | (788 | ) |   |   | (0.5 | ) |   |   | (342 | ) |   |   | (0.2 | ) |
| Interest and other income (expense), net                 |   |                            | 68      |   |   |   | 0.0 |   |   |   | 100 |   |   |   | 0.1 |   |   |   | 100 |   |   |   | 0.1 |   |
| Income tax (benefit) expense                             |   |                            | (4,443  | ) |   |   | (1.9 | ) |   |   | 66 |   |   |   | 0.0 |   |   |   | 212 |   |   |   | 0.2 |   |
| Net income (loss) from continuing operations             |   |                            | 6,753   |   |   |   | 2.8 |   |   |   | (754 | ) |   |   | (0.4 | ) |   |   | (454 | ) |   |   | (0.3 | ) |
| Income (loss) from discontinued operations, net of taxes |   |                            | — |   |   |   | — |   |   |   | (104 | ) |   |   | (0.1 | ) |   |   | (104 | ) |   |   | — |   |
| Net income (loss)                                        |   | $                               | 6,753   |   |   |   | 2.8 |   |   | $ | (858 | ) |   |   | (.05 | ) |   | $ | (558 | ) |   |   | (0.3 | ) |

----

----

| Total Credit Facility              |   | $      | 70,000  |   |
|------------------------------------|--------|--------|---------|--------|
| Borrowing base limitation          |   |   | (22,196 | )      |
| Total borrowing capacity           |   |   | 47,804  |   |
| Less interest-bearing borrowings   |   |   | — |   |
| Less non-interest bearing advances |   |   | (45,247 | )      |
| Total unused availability          |   | $      | 2,557   |   |

----

| 1. | We have been over reliant on a few select employees, and have not developed and implemented sufficient management training programs to educate our key managers on matters related to the Exchange Act reporting and disclosure requirements. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | We did not have in place information and communication structures that were sufficient to ensure that reportable events regarding our business operations were communicated completely, accurately and timely as required by the Exchange Act. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | We did not employ sufficiently qualified staff, and did not design sufficient documentation and review procedures to appropriately apply EITF 00-21, Revenue Arrangements with Multiple Deliverables, now referred to as ASC 605-25 Revenue Recognition, Multiple-Element Arrangements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We did not have sufficient procedures with respect to contract reviews to appropriately assess the impact of customer acceptance provisions when determining if delivery had occurred in order to recognize revenue. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We did not have sufficient procedures to identify and assess product sales that should be accounted for on a net presentation basis in accordance with EITF 99-19, now ASC 605-45.  In addition, we lacked sufficient controls over our products database to monitor the appropriateness of any changes related to net/gross presentation. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We did not have sufficient policies, procedures, training, or staffing criteria, with respect to our sales order entry process to correctly capture the applicable shipping terms for our sales transactions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | We did not have sufficient policies and procedures, training, or staffing criteria, with respect to linking customer orders into arrangements when negotiated as a package and requiring, collecting and maintaining sufficient written documentation when consummating a customer order and proceeding with the sales order entry process. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | We did not effectively operate our control associated with the review of the service revenue accrual, resulting in computational errors. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | We did not have sufficient procedures to test the software code developed to perform certain revenue recognition calculations. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We did not have sufficient procedures to control the accuracy and completeness of data uploaded into our database for revenue recognition calculation purposes. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | We did not sufficiently assess and apply certain aspects of ASC 605-25 Revenue Recognition, Multiple-Element Arrangements to the particular facts and circumstances of our revenue arrangements. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | We did not adequately document the assumptions used for our internal projections. |
|--------|----|-----------------------------------------------------------------------------------|

|   | 2. | Our internal financial model was not reviewed in detail by someone other than the preparer. |
|--------|----|---------------------------------------------------------------------------------------------|

|   | 3. | We did not establish review procedures to adequately supervise and review the work of the outside valuation firm we hired to prepare the valuations. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We did not establish a procedure to determine if the outside valuation firm retained by us had adequate controls and review procedures to assess the quality and accuracy of their own work prior to delivering their reports to us. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | We will include a provision in our future business combination agreements requiring selling shareholders to timely inform us if any contingent consideration is redistributed to our employees, including a certification document to be executed at the time contingent consideration is disbursed. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | We will enhance our accounting capabilities and knowledge with respect to accounting for contingent consideration as required by GAAP. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | In future employment agreements with individuals that become employees as a result of business acquisitions, we will include a provision requiring disclosure to us with respect to their receipt of any redistributed acquisition related payments. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | We will develop and implement a comprehensive set of documentation requirements regarding our forecast assumptions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | 2. | We will develop and implement a detailed financial model review and approval process. |
|--------|----|---------------------------------------------------------------------------------------|

|   | 3. | We will develop and implement a detailed set of review procedures to assess the work product provided by our external valuation services firm. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | We will develop and implement procedures to assess the quality and completeness of the internal controls performed by our external valuation services firm prior to their delivery of work product to us. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                          | INX Inc. |                      |
|-------------------------------|----------|---------------------------|
|                          |     |                      |   |
| Date: June 3, 2011  | By:      | /s/ PHILIP RYDZEWSKI |   |
|                          |     | Philip Rydzewski          |   |
|                          |     | Chief Financial Officer   |   |
|                          |     |                      |   |

----

| ExhibitNo. |   | Description                                                           |   | Filed Herewith orIncorporated byReference From:  |
|------------|--------|-----------------------------------------------------------------------|--------|-------------------------------------------------------|
| 31.1       |   | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer |   | Filed herewith.                                       |
| 31.2       |   | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer |   | Filed herewith.                                       |
| 32.1       |   | Section 1350 Certification of Principal Executive Officer             |   | Filed herewith.                                       |
| 32.2       |   | Section 1350 Certification of Principal Financial Officer             |   | Filed herewith.                                       |