Note 7 – Retrospective Adoption of New Accounting Principle

In October 2009, the FASB amended the accounting standards related to revenue recognition for arrangements with multiple deliverables. During the quarter ended February 28, 2011, the Company adopted the new accounting principle on a retrospective basis. The Company believes retrospective adoption provides the most comparable and useful financial information for financial statement users, is more consistent with the information the Company's management uses to evaluate its business, and better reflects the underlying economic performance of the Company. The financial statements and notes to the financial statements presented herein have been adjusted to reflect the retrospective adoption of the new accounting principle. Note 1, "Basis of Presentation" under the subheadings "Retrospective Adoption of New Accounting Principle" and "Revenue Recognition for Arrangements with Multiple Deliverables" of this Form 10-Q provide additional information on the Company's change in accounting resulting from the adoption of the new accounting principle and the Company's revenue recognition accounting policy.

The following table presents the effects of the retrospective adoption of the new accounting principle to the Company's previously reported consolidated financial statements: