Tangram Enterprise Solutions, which is becoming a wholly owned subsidiary of Opsware, closed 2003 with a loss of $1.8 million on revenues of $10.6 million.

Revenues declined 8 percent from 2002, but the company also cut its losses from $3 million for that year.

Tangram (OTC: TESI.OB) announced in December that it was becoming part of Opsware. The merger, which is expected to close on Feb. 20, was valued at some $10 million.