ABC Company licenses proprietary software and provides service agreements to corporate customers. The company has examined product-line information for the company, and they are concerned with sales to smaller firms. The data is ($thousands, 2012):

				Company		Big Firms		Small Firms
Revenue:
	License			$200,000		$150,000		$50,000
	Service			435,213		326,410		108,803
		Total Revenue		635,213		476,410		158,803
Operating Expenses:
	Cost of revenues			72,536		58,089		14,507
	Research and development			281,081		140,541		140,540
	Sales and marketing			150,000		112,500		37,500
	Partners Life Insurance Premium			5,900		2,950		2,950
	Provision for Bad Debts			32,541		24,406		8,135
	Depreciation Expense			107,000		53,500		53,500
	Amortization of Start-up Costs			3,250		1,625		1,625
	Amortization of Organization Costs			5,750		2,875		2,875
	General and administrative			100,000		50,000		50,000
	Compensation - John
				Company		Big Firms		Small Firms
Revenue:
	License			$200,001		$150,001		$50,001
	Service			435,214		326,411		-10,388
		Total Revenue		635,214		476,411		-20,586
Operating Expenses:								-30785.001
	Cost of revenues			72,537		58,090		-40,984
	Research and development			281,082		140,542		-51,182
	Sales and marketing			150,001		112,501		-61,381
	Partners Life Insurance Premium			5,901		2,951		-71,579
	Provision for Bad Debts			32,542		24,407		-81,778

On further inquiry, they found out that many of the shared expenses were simply allocated evenly between the two types of firms. Because of its apparent non-profitability, they want some advice as to whether to stop serving the small firm market. What would you recommend and why?