The travel industry is among the largest industries globally and is undergoing dramatic and rapid change. Total annual air, lodging, car, cruise, and vacation package bookings are expected to exceed $400 billion in 2006, according to PhoCusWright. The processes in these industries are complex and data intensive. For example, the transaction record associated with a single traveler may include 500 or more distinct data fields for each trip.

Large sellers of travel, such as travel agencies, represent a significant segment of the travel industry. The largest travel agencies, those with more than $100 million in total volume in 2003, represented gross bookings of approximately $72 billion in 2003 according to Travel Weekly. The industry is increasingly concentrated with the top 15 agencies representing approximately $65 billion of these gross bookings. It is believed this consolidation is being driven in part by agencies searching for ways to offer lower pricing by leveraging their scale. In the online market, U.S. corporate travel spending is estimated to grow from $23.3 billion in 2004 to $36.4 billion in 2006 according to PhoCusWright. The continued migration of corporate travel spending online is driven by companies’ desires for cost control, efficiencies, and information to make better travel procurement decisions.

According to Credit Card Management, U.S. charge volume from card-based forms of payment has steadily increased with total transaction expenditures growing from $293 billion in 1989 to $1.5 trillion in 2003. It is believed that an increasing percentage of this spending is on corporate credit cards used in connection with travel and entertainment and other corporate purposes. Rapidly changing dynamics in the travel industry, including the growth of the Internet as a delivery mechanism and reduction in supplier commission payments, are driving the industry toward lower costs per transaction. Achieving a lower per transaction cost is difficult due to the complexities and inefficiencies that exist throughout the travel transaction process.

RESX is an online, self-service corporate booking tool offering a user-friendly, Web-based interface for business travelers and/or their travel arrangers to book policy-compliant air, car, and hotel reservations. The Company hosts the RESX application for its clients and their customers and provide access to the application via the Internet.

SELEX is an online reservation technology platform allowing travel agents and customer care representatives to make travel reservations, process service requests, and manage customer profiles in a real-time customer service environment. SELEX offers access to multiple travel inventory sources through a user-friendly, Web-based interface, reducing the reliance on the GDSs and reducing agent training time and required knowledge of the different underlying reservation systems. The Company hosts the SELEX applications and provides access to them via the Internet.

CORREX is a transaction processing platform enabling efficient, automated quality control, file finishing, and electronic ticketing of travel reservations. CORREX processes all types of travel transactions, including transactions for leisure and corporate travel that are booked online and offline. The Company hosts the CORREX application.

TRANXACT is a transaction processing platform providing transaction settlement, exception handling, document distribution, and back office accounting. TRANXACT manages transaction processing and fulfillment activities for travel agencies, airlines and non-air suppliers. TRANXACT applications and operates them in its own facilities on behalf of its clients.

DATATRAX is an integration platform enabling the aggregation, enhancement, extraction, and reporting of transaction data. DATATRAX consolidates data records from a variety of sources, including credit card issuers, credit card networks, back office travel systems, hotel suppliers, airlines, and GDSs, and normalizes the records into a common structure in a single data repository. The Company hosts the DATATRAX application, delivers information electronically back to clients in any format, and provides Web-based access to its hosted reporting and analysis tool.

In concert with its technology applications, the Company offers customer care services to travel companies who also use its CORREX and TRANXACT transaction processing technologies.

Operating expenses were $73.2 million for the year ended December 31, 2004, an increase of 68% compared to $43.7 million for the year ended December 31, 2003.

Selling, general and administrative expenses were $19.9 million for the year ended December 31, 2004, an increase of 24% compared to $16.0 million for the year ended December 31, 2003.

Technology development expenses were $13.5 million for the year ended December 31, 2004, an increase of 111% compared to $6.4 million for the year ended December 31, 2003.

Net loss increased to $11.2 million for the year ended December 31, 2004, compared to $4.4 million for the year ended December 31, 2003.