Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line David Koning with RW Baird. Please proceed.
David Koning – Robert W. Baird & Co.
Hey guys nice results throughout the year this year.
Timothy Oliver
Thanks David.
David Koning – Robert W. Baird & Co., Inc
Good morning. And I guess first of all, you talked in the past a little bit about how each year M&A has a little impact on your business meaning M&A of your bank clients. And I think in '08 it had a little less of an impact that it did in '07. I’m just wondering how we should kind of handicap just the thoughts on that for '09?
Timothy Oliver
Yeah, David this is Tim. You are right. 2007 was one of those years where you had a particularly heavy headwind and it did abate somewhat in 2008. Going into 2009, we have nearly - exactly the same amount of headwind due to consolidation in 2009 that we experienced in 2008. So it shouldn’t be much different. The shape of the impact is a little bit more front-end loaded, so as I talked about calendarization – we are experiencing some of that, more of that impact in Q1 in a particularly seasonal business and then maybe Mike should comment on, there are obviously four large deals out there that make up potential for that number to change over the course of the year, but Mike you want to comment on those.
Michael Hayford
Yeah David. We also watch what’s going on there as some large deals that we announced last year. Net-net we’re still working through those the JPMorgan/WaMu ones probably the ones just because the way that transaction got completed which is more challenging but the other three net-net we think will come up slightly ahead and then the earlier caution we put out there as we can’t anticipate the unknown, so every year we look at how we enter the year and it assumes that we think from decent shape in '09 and very similar to '08, which is not nearly severe as it was in '07, so we are pleased with that and as we get close to midyear any impact that would be announced to have or any deals that would be announced would not have any impact in ’09, so we have a few more months here where something could happen that would impact us late in the year.
- To read the full transcript on Seeking Alpha, click here »
