Question-and-Answer Session
Operator
Your first question comes from the line of Brian Kislinger - Sidoti.
Brian Kislinger - Sidoti
The first question I have is related to the mobile segment. Can you talk a little bit about why it's seasonally weak in the December quarter, but also, you're a month-in in what seems to be the highest amount of capital spending for your clients in telecom, so given that you will add incremental bookings, would there be any reason to see that the mobile segment revenue would be down quarter-to-quarter?
Umang Gupta
First of all, we made no statement about seasonal weaknesses in the December quarter. The reference to seasonal weakness was the September quarter. The December quarter, by the way, is the strongest ever quarter; it's the current quarter that just finished, the September quarter that is seasonally weak, and usually that's because of European vacations.
Typically, what happens in Europe is people take long vacations, not just our folks, but customers. Oftentimes, POS and other things typically move into the October time frame. And so what happens is, historically, this is true ever since I've been in the software industry, and no difference about SIGOS is that the September quarter is usually seasonally weak.
Brian Kislinger - Sidoti
Let me revise the question. I thought Drew had mentioned cash flow being seasonally weak in Europe in your first quarter. Why is that?
Drew Hamer
In our first quarter, because of that August quarter, if you will.
Umang Gupta
So, in effect, cash flow collections in the December quarter reflect sales in the September quarter. And that's all it is. Typically, our cash flows lag by 90 days, and they should be very good a quarter later.
Brian Kislinger - Sidoti
Fair enough. So I guess the core of the question is back to, you're a month in, can you give us a sense for how new bookings have been in terms of the mobile segment and can you give a sense of what we might see through the rest of the year?
Umang Gupta
We give guidance for one quarter at a time, and we don't give guidance on bookings. However, you can take a look at the revenues. Starting this last quarter, you can actually take a look now and see that we are separating out the SIGOS license revenues under a new line item called ratable licenses. Previously, they were all part of subscriptions because they were not material in the previous year. But starting this year, they are now material enough to be separately broken out.
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