Question-and-Answer Session
Operator
(Operator Instructions) We have no telephone questions at this time. Let’s go to the company for some email questions.
Wendy A. Nieto
We would now like to address email questions received prior to the call. The first question that we received was inquiring about the status of the stock buy-back and if it has not been executed, why, and if it has, will management consider putting another buy-back in place.
We certainly see that as a way to deliver value back to our shareholders. I think that it is challenging for us to be able to execute on that plan as a management team just due to various restrictions and blackout periods. Certainly there are times that we would like to be buying shares but it has been problematic, so we’re currently reviewing the merits of a 10B51 stock buy-back plan that would really give us I think more flexibility and consistency in being able to successfully implement that buy-back program. But it is in place and at the end of the fiscal year we certainly would look at putting another plan in place.
Peter H. Jackson
Yes, there are a variety of things that we’ll get in place to where we’re just about to do it and then we’ll win a big contract and that becomes insider information that obviously we’re aware of and so our legal ends up telling us that you can’t publicize that and the company we went with told us they can’t publicize it until we go active with it that we can’t buy the stock because we know something you don’t know.
Or if we’re having better variable dealings in a quarter like we continue to do, then we have insider information the company’s doing better so the restrictions are a lot larger than I thought and certainly at these prices we’re getting close to trading in cash while we’re going pretty quickly, and we don’t see any stop to that.
I think that Wendy’s really pointed out a good point. I think doing the 10B51 is going to take us out of a lot of that restriction period and then we’ll figure out ways to get hold of those shares that continue to see influence in the market place.
Wendy A. Nieto
The next question. Is the subscription model a big advantage in the current financial crisis?
I think there are a couple of ways of looking at that both from just pure financial and just off of the value that we deliver to our end customers. I think for us there are some key points in the value we deliver and one being able to spread their payments out over future periods versus having a large upfront payment that may be at risk for a significant implementation cycle. We’ve been in assets for a while and we have a pretty streamlined elegant implementation process that has a lot of certainty in it, and I think with that it makes it a little easier for those out in the market place who are looking at this type of solution.
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