Question-and-Answer Session
Operator
(Operator instructions) Our first question comes for the line of David Hilal with Friedman. Please proceed.
David Hilal – Friedman, Billings, Ramsey
Great, thank you, a few questions. Jeff, on the call, on the last call, you had alluded to some big customers, I think in your pipeline that may switch over from a competitor or at least maybe dual source, and I wanted to see if any of that came to fruition in the quarter.
Jeff Lunsford
Yes, Dave. I guess just first the general situation at the height of the market is that as we said before, most of the largest content providers on the planet, whether it’s video or game software or software downloads work with multiple CDNs and as you can see in the RPIC increasing, we’ve been focusing on those larger customers and deepening our relationships there. So the short answer to your question, though, is yes. Some of that activity did occur.
David Hilal – Friedman, Billings, Ramsey
Okay and today’s call, I think, Jeff, you had talked about economic efficiency, and Doug talked about pricing activity as one reason gross margins would be down. So it sounds like the pricing environment may get a little tougher simply because of the economic times we’re in. Are you referring to customers as they come up for renewal, or do you anticipate some customers who are within their contracts who try to come back and renegotiate?
Jeff Lunsford
More so the former, as well as just large new deals that we sign up as we work on some of these larger accounts. You get a lot more scale but possibly lower unit margin in those deals, and there’s just a lot of uncertainty out there. Usually we can exert the same leverage on our suppliers as our customers can exert on us and we had talked about the potential margin compression in Q3, which did not come to bear because of the over performance in revenue.
So, as Doug mentioned, that could happen this quarter as well, but there’s just so much uncertainty that we certainly think it’s prudent to model what we suggested.
David Hilal – Friedman, Billings, Ramsey
Right, okay and then on the environment, October was certainly an interesting month for a lot of people and Cisco last night went specific that October was definitely worse than the month of September, and I know October is part of your Q4, but have you seen things worsen in the month of October?
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