Operating Loss The total Network Services Segment operating loss decreased to $6.1 million for the year ended December 31, 2000 from $12.9 million for the year ended December 31, 1999, an improvement of 53%, as a result of the factors discussed above. The Central European Sub- segment re c o rded an operating loss of $3.1 million for the year ended December 31, 2000 compared to a loss of $8.0 million for the year ended December 30, 1999, an improvement of 61%, as a result of the factors discussed above. The We s t e rn European Sub-segment operating loss d e c reased to $2.3 million for year ended December 31, 2000 compared to a loss of $3.8 million for the year ended December 31, 1999, an i m p rovement of 39%, as a result of the factors discussed above. The Other ATM Operations Sub-segment incurred an operating loss of $700,000 for the year ended December 31, 2000 compared to a loss of $1.0 million for the year ended December 31, 1999, an improvement of 30%, as a result of the factors discussed above.  Software Solutions Revenue Revenues from the Software Solutions Segment totaled $16.0 million before inter-segment eliminations for the year ended December 31, 2000 as compared to revenue of $15.1 for the year ended December 31, 1999. Software revenues are grouped into four b road categories: software license fees, professional service fees, maintenance fees and hard w a re sales. Software license fees are the initial fees c h a rged by the Company for the licensing of its pro p r i e t a ry application software to customers. Professional service fees are charged for customization, installation and consulting services provided to customers. Software maintenance fees are the ongoing fees charged to customers for the maintenance of the software products. Hard w a re sales revenues are derived from the sale of computer products and are re p o rted net of cost of sales. The components of software solutions revenue for the years ended December 31, 2000 and 1999 were:  The increases in software license fees from 1999 to 2000 can be attributed to an increased number of software sales contracts signed in 2000 as c o m p a red to 1999, primarily in the first half of the year 2000. Sales of the Company’s core software products have dropped off substantially in the third and fourth quarter of 2000 and are expected to be soft again during 2001. The Company believes that revenues of the Software Solutions Segment will increasingly be derived from the Company’s new set of software solutions, including its wireless banking solutions.  The decreases in professional service fees from 1999 to 2000 can be attributed to increased efficiency in the installation of software.  Software Solutions Segment Software Sales Backlog The Company defines “software sales backlog” as fees specified in contracts which have been executed by the Company and for which the Company expects recognition of the related revenue within one year. At December 31, 2000 the revenue backlog was $3.5 million, as compared to December 31, 1999 the revenue backlog was $3.1 million. The increase in backlog from December 31, 1999 re s u l t s principally from growth in software sales. It is management’s intention to continue to focus on expediting delivery and implementation of software in an eff o rt to reduce backlog while continuing sales growth.  T h e re can be no assurance that the contracts included in backlog will actually generate the specified revenues or that the revenues will be generated within the one-year period.  Operating Expenses S o f t w a re Solutions Segment operating expenses consist primarily of salaries and benefits, selling, general and administrative, and depreciation and amortization. In addition, the Company re c o rded a $11.2 million one-time write down of goodwill and other identifiable intangible assets associated with the Company’s purchase of Euronet USA in December 1998 (see Note 10 to Consolidated Financial Statements – Asset Write Down). Total segment operating expenses increased to $37.5 million for the year ended December 31, 2000 from $22.3 million for the year ended December 31, 1999. The components of software solutions operating costs for the years ended December 31, 2000 and 1999 were:  (in thousands) Years ending December 31, 2 0 0 0 1 9 9 9 D i rect operating costs $ 8 0 0 $ 1 , 0 8 9 Salaries and benefits 1 8 , 0 0 4 1 3 , 9 5 3 Selling, general and administrative 5 , 2 6 6 4 , 5 6 5 D e p reciation and amort i z a t i o n 2 , 2 1 5 2 , 6 8 3 Asset write down 1 1 , 1 9 0 — Total direct operating expenses $ 3 7 , 4 7 5 $ 2 2 , 2 9 0 The Company has made planned increases in staff in order to increase sales, accelerate development of certain software enhancements and re d u c e d e l i v e ry times for software. These staff increases have resulted in a significant increase in salaries and benefits, which has contributed to the net losses of the Software Solutions Segment for the years ended December 31, 2000 and 1999. In January 2001, a reduction in the work force took place with the objective being to reduce costs to bring them more in line with the anticipated revenue.  The Company has an ongoing commitment to the development, maintenance and enhancement of its products and services. As a result of this commitment the Company has invested substantial amounts in re s e a rch and development. In part i c u l a r, the Company has invested and will continue to invest in new software products that will serve as the underlying application software that permits additional features and transactions 1 8 (in thousands) Years ending December 31, 2 0 0 0 1 9 9 9 S o f t w a re license fees $ 4 , 1 1 7 $ 2 , 4 3 0 P rofessional service fees 6 , 8 6 7 8 , 2 9 8 Maintenance fees 4 , 4 8 7 4 , 0 5 1 H a rd w a re sales 5 3 5 3 7 0 Total direct operating expenses $ 1 6 , 0 0 6 $ 1 5 , 1 4 9