Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Your first question comes from the line of David Cohen from Robert W. Baird. Sir, you may proceed.
David Cohen – Robert W. Baird
Yes. Good morning, guys, and nice job.
Pramod Bhasin
Thanks, David.
David Cohen – Robert W. Baird
I guess, my first question, just as we think about revenues during 2009, it looks like – first of all, if we just annualized your Q4 run rate of $282 million, you get to about 8% to 9% growth, just keeping that constant throughout '09. So on the surface, it looks like there is some conservatism built in to that 10% to 15% growth target. And I'm just wondering if you could talk a little bit about what could bend in that assumption if you assume some clients, you’ll actually get client revenues, some will grow, and then how you think about GE versus non-GE, and maybe a little about FX. I'm just wondering how we look at all these different moving parts and how you built up the revenue assumption.
Vivek Gour
Sure, David. Good point. The run rate that we have going into 2009 will have to include some deletions of project runoff, reengineering project, analytical work and, particularly, in the ideal area, we’ll – we anticipate and know that some of our (inaudible) work will actually drop away. So in fact, the fourth quarter is not the run rate we will enter into 2009. Well, it’s going to be lower than that.
At the same time, when we look out, what do we see? We’re seeing (inaudible) companies, volume declines in terms of the amount of volume we are processing for them, and therefore, that will impact us. In some cases, we expect a few deletions, but it’s not material. It’s not big. But certainly, there’s going to be volume decline. And I think we expect certain pricing pressure. Also, as we go forward in the market, some clients who are facing extraordinarily severe volumes are going to look for pricing relief. Now, we will offset that with volume. We will offset that with other cost out initiatives that we take with productivity drivers, et cetera. And that’s where we’re coming to the debt of 15%. It is also partially just the fact that it is a harder economic environment in which to predict. And therefore, we have to be cautious.
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