Question-and-Answer Session
Operator
(Operator Instructions) Our first question is coming from Bob Craig from Stifel Nicolaus.
Robert Craig - Stifel Nicolaus
Good morning. Congratulations on the quarter. First question’s on revenue, just trying to get it down to an internal MML growth rate. If we subtract out the $9 million in amortized deferred revenue retained from NETg, we’re coming up with something in the mid-teens. Is that accurate?
Thomas J. McDonald
Well, if you look at it from the perspective of year over year, yes. But you still -- you still have the impact of the acquisition and the loss of the deferred revenue from NETg, so we start picking up that acceleration as we go further and further into the year. So yes, it is but I wouldn’t say that is an organic growth rate.
Charles E. Moran
Yeah, I think Bob, we were still comfortable with our 9.8% growth that we had projected at the beginning of the year and hopefully we would do better than that with cross-selling and upselling, but that’s not fair because you are picking up new customers, so that really isn’t per se organic.
Robert Craig - Stifel Nicolaus
Okay, but that number of 9.8% is still roughly valid?
Thomas J. McDonald
Yes.
Charles E. Moran
Yeah, we’d feel comfortable with that.
Robert Craig - Stifel Nicolaus
Okay, second question; could you remind us what percentage of total renewals do you typically incur in the third quarter as opposed to the fourth? Is it something like a 25-75 split?
Thomas J. McDonald
Well, it pretty much follows the seasonality of the business. The seasonality of our quarter is about 15% is in the first quarter, about 25% in the second quarter, about 20% in the third quarter, and then it kicks up to 45% to 50%, someplace in there in the fourth quarter. So the renewals kind of follow that seasonality.
Robert Craig - Stifel Nicolaus
Okay. All right, that’s helpful. And could you provide a little bit more color on the commission changes that you did make and have you reached any decisions yet on sales quotas and how those might change for the field sales reps?
Charles E. Moran
Sure, Bob. Taking a step back, the reason we actually had two plans was because it didn’t make a lot of sense to have one plan knowing that we were going to do the NETg acquisition and change midstream, reassign accounts and so forth, so we really set up by design a plan that ended in the first half of the year for the majority of the sales folks and then started one at the second half of the year.
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