|         |                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------|
| • | Total net revenue increased $2.4 million, or 10%, to $26.6 million, from $24.2 million in the prior-year period. |

|         |                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Recurring revenues (comprised of support, maintenance and subscription services) for the quarter were $13.2 million, an increase of 3% over the prior-year period. |

|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | Gross margin was 66% in the quarter compared to 62% in the prior-year period. |

|         |                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted operating income (a non-GAAP measure which excludes stock-based compensation, amortization of intangibles and other one-time items) from continuing operations increased $1.4 million year over year to $0.8 million, from an adjusted operating loss from continuing operations of $0.6 million in the year-ago period (see reconciliation below). |

|         |                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted income (non-GAAP) from continuing operations grew to $0.8 million, or $0.03 per diluted share, compared with an adjusted loss from continuing operations of $0.4 million, or ($0.02) per share, last year (see reconciliation below). |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Loss from continuing operations for the period was $0.6 million, or ($0.03) per diluted share, compared to a loss from continuing operations of $1.4 million, or ($0.06) per share, in the prior-year period.  Inclusive of discontinued operations, net income for the quarter was $20.5 million, or $0.92 per diluted share, compared to a net loss of $0.4 million, or ($0.01) per share, in the prior-year period. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | On July 1, 2013, Agilysys completed the sale of RSG to Kyrus Solutions, Inc. for total consideration of approximately $37.6 million in cash, inclusive of a working capital adjustment of $3.1 million.  Upon the close of the transaction, the aggregate purchase price was reduced by fees of approximately $1.6 million for transaction related costs, resulting in net proceeds received of approximately $36.0 million. |

----

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | Total net revenue increased $4.5 million, or 10%, to $51.1 million, from $46.6 million in the comparable prior-year period. |

|         |                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Recurring revenues (comprised of support, maintenance and subscription services) for the first six months of fiscal 2014 were $26.3 million, an increase of 6% over the first six months of fiscal 2013. |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Gross margin was 66% in the first half of fiscal 2014 compared to 62% in the prior-year period. |

|         |                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted operating income (non-GAAP) from continuing operations in the first six months of fiscal 2014 increased $3.3 million to $2.3 million, from an adjusted operating loss from continuing operations of $1.0 million in the year-ago period (see reconciliation below). |

|         |                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted income (non-GAAP) from continuing operations grew to $2.2 million, or $0.10 per diluted share, compared with an adjusted loss from continuing operations of $1.3 million, or ($0.06) per share, in the first six months of fiscal 2013 (see reconciliation below). |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Loss from continuing operations for the period was $0.3 million, or ($0.01) per diluted share, compared to a loss from continuing operations of $4.1 million, or ($0.19) per share, in the prior-year period.  Inclusive of discontinued operations, net income for the first half of fiscal 2014 was $21.8 million, or $0.99 per diluted share, compared to a net loss of $2.1 million, or ($0.10) per share, in the prior-year period. |

----

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   |   |   |   |   |   |   |   |   |
| (In thousands, except per share data)                  |   | Three Months Ended |   | Six Months Ended |
|                                                   |   | September 30, |   | September 30, |
|                                                   |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                   |   |   |   |   |   |   |   |   |
| Net revenue:                                           |   |   |   |   |   |   |   |   |
| Products                                               |   | $ | 9,781 |  |   | $ | 7,512 |  |   | $ | 17,601 |  |   | $ | 14,290 |  |
| Support, maintenance and subscription services         |   | 13,163 |  |   | 12,733 |  |   | 26,338 |  |   | 24,902 |  |
| Professional services                                  |   | 3,635 |  |   | 3,987 |  |   | 7,140 |  |   | 7,429 |  |
| Total net revenue                                      |   | 26,579 |  |   | 24,232 |  |   | 51,079 |  |   | 46,621 |  |
| Cost of goods sold:                                    |   |   |   |   |   |   |   |   |
| Products                                               |   | 3,993 |  |   | 3,839 |  |   | 7,780 |  |   | 7,420 |  |
| Support, maintenance and subscription services         |   | 2,625 |  |   | 2,802 |  |   | 4,932 |  |   | 5,426 |  |
| Professional services                                  |   | 2,545 |  |   | 2,567 |  |   | 4,812 |  |   | 4,858 |  |
| Total cost of goods sold                               |   | 9,163 |  |   | 9,208 |  |   | 17,524 |  |   | 17,704 |  |
| Gross profit                                           |   | 17,416 |  |   | 15,024 |  |   | 33,555 |  |   | 28,917 |  |
| Operating expenses:                                    |   |   |   |   |   |   |   |   |
| Product development                                    |   | 7,005 |  |   | 7,285 |  |   | 13,481 |  |   | 11,705 |  |
| Sales and marketing                                    |   | 4,366 |  |   | 2,930 |  |   | 7,614 |  |   | 7,131 |  |
| General and administrative                             |   | 5,261 |  |   | 5,248 |  |   | 10,070 |  |   | 10,527 |  |
| Depreciation of fixed assets                           |   | 520 |  |   | 546 |  |   | 1,008 |  |   | 1,131 |  |
| Amortization of intangibles                            |   | 794 |  |   | 817 |  |   | 1,588 |  |   | 1,672 |  |
| Asset impairment and related charges                   |   | 18 |  |   | — |  |   | 18 |  |   | 208 |  |
| Restructuring, severance and other charges             |   | 561 |  |   | 430 |  |   | 616 |  |   | 1,555 |  |
| Operating loss                                         |   | (1,109 | ) |   | (2,232 | ) |   | (840 | ) |   | (5,012 | ) |
| Other (income) expenses :                              |   |   |   |   |   |   |   |   |
| Interest income                                        |   | (20 | ) |   | (4 | ) |   | (33 | ) |   | (8 | ) |
| Interest expense                                       |   | 45 |  |   | (20 | ) |   | 106 |  |   | 244 |  |
| Other income, net                                      |   | (5 | ) |   | (160 | ) |   | (40 | ) |   | (16 | ) |
| Loss before income taxes                               |   | (1,129 | ) |   | (2,048 | ) |   | (873 | ) |   | (5,232 | ) |
| Income tax benefit                                     |   | (501 | ) |   | (633 | ) |   | (606 | ) |   | (1,162 | ) |
| Loss from continuing operations                        |   | (628 | ) |   | (1,415 | ) |   | (267 | ) |   | (4,070 | ) |
| Income from discontinued operations, net of taxes      |   | 21,080 |  |   | 1,064 |  |   | 22,035 |  |   | 1,926 |  |
| Net income (loss)                                      |   | $ | 20,452 |  |   | $ | (351 | ) |   | $ | 21,768 |  |   | $ | (2,144 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding  |   | 22,125 |  |   | 21,883 |  |   | 22,075 |  |   | 21,860 |  |
|                                                   |   |   |   |   |   |   |   |   |
| Net (loss) income per share – basic and diluted: |   |   |   |   |   |   |   |   |
| Loss from continuing operations                        |   | $ | (0.03 | ) |   | $ | (0.06 | ) |   | $ | (0.01 | ) |   | $ | (0.19 | ) |
| Income from discontinued operations                    |   | 0.95 |  |   | 0.05 |  |   | 1.00 |  |   | 0.09 |  |
| Net income (loss) per share                            |   | $ | 0.92 |  |   | $ | (0.01 | ) |   | $ | 0.99 |  |   | $ | (0.1 | ) |
|                                                   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                    |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                               |   |   |   |   |
| (In thousands, except share data)                                                                                                                                                                                  |   | September 30, |   | March 31, |
|                                                                                                                                                                                                               | 2013 |   | 2013 |
| ASSETS                                                                                                                                                                                                             |   |   |   |   |
| Current assets:                                                                                                                                                                                                    |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                          |   | $ | 100,432 |  |   | $ | 82,931 |  |
| Accounts receivable, net of allowance of $868 and $786, respectively                                                                                                                                               |   | 19,619 |  |   | 17,892 |  |
| Inventories                                                                                                                                                                                                        |   | 1,666 |  |   | 1,709 |  |
| Prepaid expenses                                                                                                                                                                                                   |   | 3,120 |  |   | 3,167 |  |
| Other current assets                                                                                                                                                                                               |   | 154 |  |   | 671 |  |
| Current assets - discontinued operations                                                                                                                                                                           |   | — |  |   | 40,007 |  |
| Total current assets                                                                                                                                                                                               |   | 124,991 |  |   | 146,377 |  |
| Property and equipment, net                                                                                                                                                                                        |   | 14,190 |  |   | 13,855 |  |
| Goodwill                                                                                                                                                                                                           |   | 17,701 |  |   | 14,128 |  |
| Intangible assets, net                                                                                                                                                                                             |   | 11,267 |  |   | 11,283 |  |
| Capitalized software development, net                                                                                                                                                                              |   | 11,412 |  |   | 5,596 |  |
| Other non-current assets                                                                                                                                                                                           |   | 4,918 |  |   | 4,179 |  |
| Non-current assets - discontinued operations                                                                                                                                                                       |   | — |  |   | 2,162 |  |
| Total assets                                                                                                                                                                                                       |   | $ | 184,479 |  |   | $ | 197,580 |  |
|                                                                                                                                                                                                               |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                         |   |   |   |   |
| Current liabilities:                                                                                                                                                                                               |   |   |   |   |
| Accounts payable                                                                                                                                                                                                   |   | $ | 9,389 |  |   | $ | 10,427 |  |
| Deferred revenue                                                                                                                                                                                                   |   | 16,066 |  |   | 20,461 |  |
| Accrued and other current liabilities                                                                                                                                                                              |   | 12,469 |  |   | 12,938 |  |
| Capital lease obligations – current                                                                                                                                                                          |   | 52 |  |   | 58 |  |
| Current liabilities - discontinued operations                                                                                                                                                                      |   | — |  |   | 30,372 |  |
| Total current liabilities                                                                                                                                                                                          |   | 37,976 |  |   | 74,256 |  |
| Deferred income taxes – non-current                                                                                                                                                                          |   | 3,907 |  |   | 4,002 |  |
| Capital lease obligations – non-current                                                                                                                                                                      |   | 45 |  |   | 28 |  |
| Other non-current liabilities                                                                                                                                                                                      |   | 6,613 |  |   | 4,640 |  |
| Non-current liabilities - discontinued operations                                                                                                                                                                  |   | — |  |   | 798 |  |
| Shareholders’ equity:                                                                                                                                                                                        |   |   |   |   |
| Common shares, without par value, at $0.30 stated value; authorized 80,000,000 shares; 31,606,831 issued; and 22,428,913 and 22,145,915 shares outstanding at September 30, 2013 and March 31, 2013 , respectively |   | 9,482 |  |   | 9,482 |  |
| Treasury shares (9,177,918  and 9,460,916 shares at September 30, 2013 and March 31, 2013, respectively)                                                                                                           |   | (2,753 | ) |   | (2,838 | ) |
| Capital in excess of stated value                                                                                                                                                                                  |   | (14,222 | ) |   | (14,267 | ) |
| Retained earnings                                                                                                                                                                                                  |   | 144,346 |  |   | 122,578 |  |
| Accumulated other comprehensive loss                                                                                                                                                                               |   | (915 | ) |   | (1,099 | ) |
| Total shareholders’ equity                                                                                                                                                                                   |   | 135,938 |  |   | 113,856 |  |
| Total liabilities and shareholders’ equity                                                                                                                                                                   |   | $ | 184,479 |  |   | $ | 197,580 |  |
|                                                                                                                                                                                                               |   |   |   |   |

----

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |
|                                                                                                            |   | Six Months Ended |
| (In thousands)                                                                                                  |   | September 30, |
|                                                                                                            |   | 2013 |   | 2012 |
| Operating activities:                                                                                           |   |   |   |   |
| Net income (loss)                                                                                               |   | $ | 21,768 |  |   | $ | (2,144 | ) |
| Less: Income from discontinued operations                                                                       |   | 22,035 |  |   | 1,926 |  |
| Loss from continuing operations                                                                                 |   | (267 | ) |   | (4,070 | ) |
| Adjustments to reconcile net income (loss) from continuing operations to net cash used in operating activities: |   |   |   |   |
| Restructuring, severance and other charges                                                                      |   | 616 |  |   | 1,555 |  |
| Payments for restructuring, severance and other charges                                                         |   | (896 | ) |   | (5,690 | ) |
| Payments for legal settlements                                                                                  |   | (87 | ) |   | — |  |
| Asset impairments and related charges                                                                           |   | 18 |  |   | 208 |  |
| Depreciation                                                                                                    |   | 1,008 |  |   | 1,131 |  |
| Amortization of intangibles                                                                                     |   | 1,576 |  |   | 2,170 |  |
| Share-based compensation                                                                                        |   | 892 |  |   | 567 |  |
| Excess tax benefit from equity awards                                                                           |   | (139 | ) |   | — |  |
| Changes in operating assets and liabilities:                                                                    |   |   |   |   |
| Accounts receivable                                                                                             |   | (1,391 | ) |   | 1,543 |  |
| Inventories                                                                                                     |   | 127 |  |   | 868 |  |
| Prepaids                                                                                                        |   | (634 | ) |   | (14 | ) |
| Accounts payable                                                                                                |   | (1,053 | ) |   | (491 | ) |
| Deferred revenue                                                                                                |   | (5,368 | ) |   | (9,311 | ) |
| Accrued and other liabilities                                                                                   |   | (2,027 | ) |   | (6,757 | ) |
| Income taxes payable                                                                                            |   | (798 | ) |   | (274 | ) |
| Other changes, net                                                                                              |   | 763 |  |   | 326 |  |
| Net cash used in operating activities from continuing operations                                                |   | (7,660 | ) |   | (18,239 | ) |
| Net cash used in operating activities from discontinued operations                                              |   | (1,018 | ) |   | (3,533 | ) |
| Net cash used in operating activities                                                                           |   | (8,678 | ) |   | (21,772 | ) |
|                                                                                                            |   |   |   |   |
| Investing activities:                                                                                           |   |   |   |   |
| Proceeds from sale of RSG                                                                                       |   | 36,054 |  |   | — |  |
| Cash paid for acquisitions, net                                                                                 |   | (1,750 | ) |   | — |  |
| Capital expenditures                                                                                            |   | (2,449 | ) |   | (737 | ) |
| Capitalized software development costs                                                                          |   | (4,866 | ) |   | (1,119 | ) |
| Proceeds from marketable securities and company owned life insurance policies, net                              |   | (4 | ) |   | 4,305 |  |
| Net cash provided by investing activities from continuing operations                                            |   | 26,985 |  |   | 2,449 |  |
| Net cash used in investing activities from discontinued operations                                              |   | (117 | ) |   | (549 | ) |
| Net cash provided by investing activities                                                                       |   | 26,868 |  |   | 1,900 |  |
|                                                                                                            |   |   |   |   |
| Financing activities:                                                                                           |   |   |   |   |
| Repurchases of shares to satisfy employee tax withholding and option price                                      |   | (777 | ) |   | (134 | ) |
| Exercise of employee stock options                                                                              |   | 64 |  |   | 67 |  |
| Excess tax benefit from equity awards                                                                           |   | 139 |  |   | — |  |
| Principal payment under long-term obligations                                                                   |   | (38 | ) |   | (219 | ) |
| Net cash used in financing activities from continuing operations                                                |   | (612 | ) |   | (286 | ) |
| Net cash used in financing activities from discontinued operations                                              |   | (80 | ) |   | (180 | ) |
| Net cash used in financing activities                                                                           |   | (692 | ) |   | (466 | ) |
|                                                                                                            |   |   |   |   |
| Effect of exchange rate changes on cash                                                                         |   | 3 |  |   | 78 |  |
| Cash flows provided by (used in) continuing operations                                                          |   | 18,716 |  |   | (15,998 | ) |
| Cash flows used in discontinued operations:                                                                     |   | (1,215 | ) |   | (4,262 | ) |
| Net increase (decrease) in cash                                                                                 |   | 17,501 |  |   | (20,260 | ) |
| Cash and cash equivalents at beginning of period                                                                |   | 82,931 |  |   | 97,587 |  |
| Cash and cash equivalents at end of period                                                                      |   | $ | 100,432 |  |   | $ | 77,327 |  |
|                                                                                                            |   |   |   |   |

----

|                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In thousands, except per share data)                                                                                               |   | Three Months Ended |   | Six Months Ended |
| September 30,                                                                                                                       |   | September 30, |
|                                                                                                                                |   | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Operating loss                                                                                                                      |   | $ | (1,109 | ) |   | $ | (2,232 | ) |   | $ | (840 | ) |   | $ | (5,012 | ) |
| Share-based compensation expense                                                                                                    |   | 525 |  |   | 415 |  |   | 892 |  |   | 567 |  |
| Amortization of intangibles                                                                                                         |   | 794 |  |   | 817 |  |   | 1,588 |  |   | 1,672 |  |
| Asset impairments and related charges                                                                                               |   | 18 |  |   | — |  |   | 18 |  |   | 208 |  |
| Restructuring, severance and other charges                                                                                          |   | 561 |  |   | 430 |  |   | 616 |  |   | 1,555 |  |
| Adjusted operating income (loss) from continuing operations (a)                                                                     |   | 789 |  |   | (570 | ) |   | 2,274 |  |   | (1,010 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Other expenses, net                                                                                                                 |   | 20 |  |   | (184 | ) |   | 33 |  |   | 220 |  |
| Cash income tax expense (b)                                                                                                         |   | 10 |  |   | 27 |  |   | 59 |  |   | 63 |  |
| Adjusted income (loss) from continuing operations (a)                                                                               |   | $ | 759 |  |   | $ | (413 | ) |   | $ | 2,182 |  |   | $ | (1,293 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                                                                                |   |   |   |   |   |   |   |   |
| Basic and diluted                                                                                                                   |   | 22,125 |  |   | 21,883 |  |   | 22,075 |  |   | 21,860 |  |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| Adjusted income (loss) per share from continuing operations (a):                                                                    |   |   |   |   |   |   |   |   |
| Basic and diluted                                                                                                                   |   | $ | 0.03 |  |   | $ | (0.02 | ) |   | $ | 0.10 |  |   | $ | (0.06 | ) |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| (a) Non-GAAP financial measure                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                |   |   |   |   |   |   |   |   |
| (b) Taxes calculated based upon our estimated cash tax payments, exclusive of payments related to AMT, for the three and six months |
| ended September 30, 2013 and 2012.                                                                                                  |   |   |   |   |   |   |   |   |

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |
|                                            |   |   |   |   |
|                                            |   | Six Months Ended |
| (In thousands)                                  |   | September 30, |
|                                            |   | 2013 |   | 2012 |
| Operating activities:                           |   |   |   |   |
| Net cash used in continuing operations          |   | $ | (7,660 | ) |   | $ | (18,239 | ) |
| Non-recurring cash items:                       |   |   |   |   |
| Restructuring, severance and other payments     |   | 896 |  |   | 5,690 |  |
| Payments for legal settlements                  |   | 87 |  |   | — |  |
| BEP/SERP payments                               |   | — |  |   | 4,468 |  |
| Adjusted cash used in continuing operations (a) |   | $ | (6,677 | ) |   | $ | (8,081 | ) |
|                                            |   |   |   |   |
|                                            |   |   |   |   |
| (a) Non-GAAP financial measure                  |   |   |   |   |

----

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                   |   | Fiscal 2013 |   |   |
|                                                   |   | Three months ended |   | Twelve months ended |
| (In thousands, except per share data)                  |   | June 30 |   | September 30 |   | December 31 |   | March 31 |   | March 31, 2013 |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Net revenue:                                           |   |   |   |   |   |   |   |   |   |   |
| Products                                               |   | $ | 6,778 |  |   | $ | 7,512 |  |   | $ | 12,467 |  |   | $ | 6,760 |  |   | $ | 33,517 |  |
| Support, maintenance and subscription services         |   | 12,169 |  |   | 12,733 |  |   | 12,245 |  |   | 13,089 |  |   | 50,236 |  |
| Professional services                                  |   | 3,442 |  |   | 3,987 |  |   | 3,478 |  |   | 3,702 |  |   | 14,609 |  |
| Total net revenue                                      |   | 22,389 |  |   | 24,232 |  |   | 28,190 |  |   | 23,551 |  |   | 98,362 |  |
| Cost of goods sold:                                    |   |   |   |   |   |   |   |   |   |   |
| Products                                               |   | 3,581 |  |   | 3,839 |  |   | 8,135 |  |   | 3,092 |  |   | 18,647 |  |
| Support, maintenance and subscription services         |   | 2,624 |  |   | 2,802 |  |   | 2,561 |  |   | 2,516 |  |   | 10,503 |  |
| Professional services                                  |   | 2,291 |  |   | 2,567 |  |   | 2,144 |  |   | 2,291 |  |   | 9,293 |  |
| Total cost of goods sold                               |   | 8,496 |  |   | 9,208 |  |   | 12,840 |  |   | 7,899 |  |   | 38,443 |  |
| Gross profit                                           |   | 13,893 |  |   | 15,024 |  |   | 15,350 |  |   | 15,652 |  |   | 59,919 |  |
| Operating expenses:                                    |   |   |   |   |   |   |   |   |   |   |
| Product development                                    |   | 4,420 |  |   | 7,285 |  |   | 6,260 |  |   | 6,727 |  |   | 24,692 |  |
| Sales and marketing                                    |   | 4,201 |  |   | 2,930 |  |   | 3,667 |  |   | 3,948 |  |   | 14,746 |  |
| General and administrative                             |   | 5,279 |  |   | 5,248 |  |   | 5,852 |  |   | 5,481 |  |   | 21,860 |  |
| Depreciation of fixed assets                           |   | 585 |  |   | 546 |  |   | 508 |  |   | 517 |  |   | 2,156 |  |
| Amortization of intangibles                            |   | 855 |  |   | 817 |  |   | 806 |  |   | 806 |  |   | 3,284 |  |
| Asset impairment and related charges                   |   | 208 |  |   | — |  |   | — |  |   | (88 | ) |   | 120 |  |
| Legal settlements                                      |   | — |  |   | — |  |   | — |  |   | 1,664 |  |   | 1,664 |  |
| Restructuring, severance and other charges             |   | 1,125 |  |   | 430 |  |   | (31 | ) |   | (29 | ) |   | 1,495 |  |
| Operating loss                                         |   | (2,780 | ) |   | (2,232 | ) |   | (1,712 | ) |   | (3,374 | ) |   | (10,098 | ) |
| Other (income) expenses :                              |   |   |   |   |   |   |   |   |   |   |
| Interest income                                        |   | (4 | ) |   | (4 | ) |   | — |  |   | (4 | ) |   | (12 | ) |
| Interest expense                                       |   | 264 |  |   | (20 | ) |   | (13 | ) |   | 35 |  |   | 266 |  |
| Other expense (income), net                            |   | 144 |  |   | (160 | ) |   | 217 |  |   | (64 | ) |   | 137 |  |
| Loss before income taxes                               |   | (3,184 | ) |   | (2,048 | ) |   | (1,916 | ) |   | (3,341 | ) |   | (10,489 | ) |
| Income tax benefit                                     |   | (529 | ) |   | (633 | ) |   | (813 | ) |   | (1,468 | ) |   | (3,443 | ) |
| Loss from continuing operations                        |   | $ | (2,655 | ) |   | $ | (1,415 | ) |   | $ | (1,103 | ) |   | $ | (1,873 | ) |   | $ | (7,046 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding  |   | 21,836 |  |   | 21,883 |  |   | 21,900 |  |   | 21,901 |  |   | 21,880 |  |
|                                                   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per share – basic and diluted: |   |   |   |   |   |   |   |   |   |   |
| Loss per share from continuing operations              |   | $ | (0.12 | ) |   | $ | (0.06 | ) |   | $ | (0.05 | ) |   | $ | (0.09 | ) |   | $ | (0.32 | ) |
|                                                   |   |   |   |   |   |   |   |   |   |   |