It is estimated that the global automobile insurance industry processes more than 100 million claims each year, representing over $150 billion in repair costs. In the U.S., of the approximately 470 companies offering automobile insurance, the twenty largest providers accounted for over 70% of all automobile insurance premiums in 2005, and in 2004, the top 15 European non-life insurance companies accounted for 84% of total non-life insurance premiums.

It is believed that this industry is growing due to an increasing number of vehicles on the road and an increasing percentage of vehicles that have insurance. According to industry sources, from 2003 to 2006, the worldwide number of personal and commercial vehicles grew an average of 3.5% per year, to an estimated 928 million vehicles in 2006. From 2006 to 2016, the number of worldwide personal and commercial vehicles is estimated to grow 2% to 3% per year, with forecasted annual growth of 8% in Asia-Pacific countries.

The automotive recycling industry is highly fragmented with over $25 billion in estimated worldwide annual sales by over 15,000 independent salvage and recycling facilities. Participants in the automotive recycling industry are a valuable source of economical and often hard-to-find used vehicle replacement parts. In addition, this industry has become more sophisticated and technology-driven in order to keep pace with innovations in vehicle technology. Additionally, insurance companies are increasingly mandating the use of aftermarket and recycled parts to lower the costs to repair damaged vehicles.

The Company’s core offering is its estimating and workflow software. The Company’s estimating and workflow software helps the customers manage the overall claims process, estimate the cost to repair a damaged vehicle, and calculate the pre-collision fair market value of a vehicle.

The Company’s salvage and recycling software helps automotive recyclers manage their inventories in order to facilitate the location, sale and exchange of vehicle parts for use in the repair of a damaged vehicle.

The Company’s business intelligence and consulting services help the insurance company customers monitor and assess their performance through customized data, reports and analyses.

The Company has developed its shared services to help its insurance company customers outsource claims-related tasks.

The Company provides additional services and products to its customers, which include selling hardware for use with its software, training, and call center technical support services.

The Company also offers services that allow its customers to access operational and technical support in times of high demand following natural disasters and software that helps detect fraudulent activity. The Company also provides software and services that are not directly related to the automobile insurance claims process.

Operating expenses increased $5.1 million, or 8.2%, to $67.5 million for the six months ended December 31, 2006 compared to $62.4 million for the same period a year ago.

Total cost of revenue increased $4.5 million, or 4.8%, to $99.4 million for the six months ended December 31, 2006 compared to $94.9 million for the same period a year ago.

Net loss from continuing operations increased $60.3 million, or 198.2%, to a loss of $29.9 million for the six months ended December 31, 2006 compared to net earnings of $30.4 million for the same period a year ago.

Interest expense increased $36.4 million for the six months ended December 31, 2006 compared to no interest expense in the same period a year ago.