That cost was $72,000 this year, compared to $570,000 in the year ago second quarter. Revenue was $27.9 million in the most recently ended period, up 2.6 percent from $27.2 million a year. The most interesting element was new accounting for Dynamics AX sales that stems from Microsoft's Enterprise Application sales. Where Edgewater had recorded gross sales previously it now also records net sales for the EA deals. "Microsoft is taking control of the channel when it comes to the actual process," said CFO Tim Oakes. The company had $4.3 million in software sales in the second quarter, up from $3.6 million in last year's corresponding period. However, that included $930,000 recognized from the sale of a Fullscope software title to Microsoft in June 2011, along with the combination of net and gross sale volume from Dynamics sales. It was the first quarter EA deals were recorded and there three of them that brought in $250,000 from net margin. Oakes expects margins to drop because of discounting by Microsoft