Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And we go first to Dave Koning with Robert W. Baird.
Dave Koning - Robert W. Baird
Hi, guys.
John Harris
Hi, Dave. How are you doing?
Dave Koning - Robert W. Baird
Good, thanks. First of all, I am just wondering with the guidance introduction for the full year and for -- really for the quarter as well, Q2 coming in below what you expected, did you know half way through Q2 when you gave guidance that, that you were looking at this other business, I guess I am just wondering if that was incremental spend relative to when you said Q2 guidance not for ?08 some of the growth initiatives, if that is our incremental spend relative to what you assigned in mid-May?
Mike Dodson
Yeah, Dave. I will take that, when we gave our guidance for the quarter we very well could have been in the middle of doing the due-diligence, but the assumption is as it going through something like that especially as far down the path as we got, that those cost would be capitalized as part of the deal and you wouldn’t see come to your income statement. So because we didn’t conclude on the deal that came through a superior costs and we didn’t anticipate that and we didn’t -- that’s why I didn’t include in our guidance when we gave for the quarter.
Dave Koning - Robert W. Baird
Okay, okay, I appreciate that, that makes a lot of sense. Secondly, the Philippines I guess I was a little surprise that the shift away from a Philippines in towards the U.S. especially given a weaker economy I would think that a lot of your clients would really push for the lower cost options. I am just wondering kind of what you are seeing there if that sustain in the Q3 that there is just a shift away from the Philippines?
John Harris
No, they are just charters and a long-term shift away from the Philippines I think this is just a point in time issue just based on how our client demands were coming in. We have a couple of clients who specially want U.S. delivery because some premium problems they were taking out to the market and it just caused that shift long-term to see the trend very much still continuing to move towards offshore delivery. And if you look at our sales pipeline the majority of the pipeline today is for Philippine delivery or Latin American delivery.
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