Question-and-Answer Session
Operator
Thank you sir. (Operator Instructions) Your first question comes from Robert Craig - Stifel Nicolaus & Company, Inc.
Robert Craig - Stifel Nicolaus & Company, Inc.
A couple of macro questions to start off. Any indications of cutbacks or any planned reductions in training budgets among your client base and/or any changes in demand patterns, domestic versus international?
Nicholas R. Schacht
Those are good questions Bob. In terms of what we’re seeing in regard to our customers specifically, we recently conducted our own periodic survey of our customers where we ask about their expectations of spending on training. This survey was done two weeks ago and as a result – anyway, at that time 57% of the respondents expected training expenditures in the next six months to remain constant, 27% expected an increase in spending on training, and 16% expected a decrease.
So we’re seeing overall a somewhat positive outlook from our particular client base. In terms of looking at things internationally, I can’t say that we’re seeing appreciably different trends internationally than we are in the United States.
Robert Craig - Stifel Nicolaus & Company, Inc.
Regarding that survey, Nick, were those numbers appreciably different from the last time you conducted such a survey?
Nicholas R. Schacht
Those numbers went down slightly in terms of the number expecting an increase but you know where we see 27% of them expecting an increase in spending on training, this time six months ago that number was about 30%.
Robert Craig - Stifel Nicolaus & Company, Inc.
And how reliable a predictor has that been, that survey?
Nicholas R. Schacht
Over time we think it’s been a pretty reliable predictor.
Robert Craig - Stifel Nicolaus & Company, Inc.
And I take it you’re not seeing any impact from greater travel costs, be it gasoline or airfare or whatever on the business?
Nicholas R. Schacht
We haven’t seen anything that would indicate that travel costs are a factor in our customer’s decisions patterns. I think a good thing to keep in mind is that clearly because of the fact that our goal and the goal of individuals attending our courses is to improve their productivity on the job, the benefits and productivity gains far outweigh additional costs related to travel.
Robert Craig - Stifel Nicolaus & Company, Inc.
Per your front end comments I won’t ask any specifics on the sale process but has there been any level of distraction within the organization? And I guess a second question would be has that process or the prospects or a more difficult economic environment in any way changed your growth plans?
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