Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Eric Martinuzzi - Craig-Hallum Capital.
Eric Martinuzzi - Craig-Hallum Capital
My question has to do with the outlook. I want to better understand the foreign currency impact to the guidance. It looks like given the quarter that you just finished up with we're down sequentially about $1.1 million to $1.6 million. How much of that is foreign exchange and how much of that is kind of macroeconomic pressures?
Umang Gupta
I'd say virtually 100% right now is based on foreign exchange. If you do the math at a very gross level, 45% of our revenues come from outside the United States. Either SIGOS or Keynote Internet-based revenues, 45% approximately speaking, come from outside of the United States.
So if you basically take about half our revenues and say that they had a haircut this quarter of roughly 14%, which means that there would be a 7% reduction for overall revenues for the quarter as a whole just simply for the business just based on foreign exchange. Take $21 million, multiply by 7% and you're down by $1.5 million automatically.
So you can see that from our guidance we are well within the range of assuming that much of the reduction, if any, that should come would be from foreign exchange. We do not expect reduction on an organic basis otherwise.
Eric Martinuzzi - Craig-Hallum Capital
Okay, and then your cost structure, I understand the revenue is 45% ex U.S., what about the cost structure, what percentage of that is ex U.S.?
Umang Gupta
It's obviously not 50% because SIGOS does not represent 50% of our business and most of our costs outside the United States are really SIGOS costs. There are some costs associated with sales and marketing outside the United States, but that's a much smaller percentage of our overall revenues.
While we do not provide specific data in our model for what the costs are, I can say to you that there will be corresponding reductions in costs in the coming quarter because of SIGOS. SIGOS definitely will be less, and so you should not expect a one for one reduction at all. In other words, if you have $1 reduction in revenues, it does not imply a $1 reduction in profits, for example. Our costs will go down, maybe not by $1 million but even if they went down by $700,000 or so, it might affect us by a couple of cents, but probably no more than that based on that.
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