Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Kevin Lui – B. Riley & Company, Inc.
Kevin Lui – B. Riley & Company, Inc.
I guess first question just in terms of the CEM segment I know you guys are positive on the long term growth prospects there but just curious kind of what you guys can do in the near term to either try and drive some renewed growth there or maybe improve the profitability of the overall segment?
Umang Gupta
First of all let me just point out that while we are disappointed by CEM having kind of gone down below what I always thought was sort of like a low point at least until last quarter which was about $2 million. It is important to note that in this particular quarter the reduction of CEM was also accompanied by a pretty significant reduction of our load testing and ITM engagement business.
And, I have no reason to believe in this particular quarter at least that this was sort of limited to CEM. I think it was much more a situation where consulting engagements in general are very easy to defer or cut during an economic climate slowdown and that happened with both our ITM consulting engagements and our CEM consulting engagements.
Our CEM subscriptions remained constant, our CEM KSR studies did well and in fact, our Web Excellence, the score card business, the subscription portion of our CEM business did quite well. So, the real reduction was in the consulting custom engagement and like I said I think that may have very well had more to do with the economy than perhaps the CEM business per say.
Kevin Lui – B. Riley & Company, Inc.
Then last quarter you guys highlighted kind of a shift in terms of how you’re billing some of your larger customers to more of a utilization based model or a pricing in arrears. Can you talk about what the impact on revenues during the quarter from that initiative was?
Umang Gupta
I would be hard pressed to give you a direct correlation between that initiative and the impact of revenue but I can say to you in a pretty positive way that we’re feeling pretty good about our ITM subscriptions business. We really thought that our ITM subscription business was going to take a hit this quarter as we reduced our website perspective products down to the 10% goal but, it didn’t happen.
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