Question-and-Answer Session
Operator
Yes, thank you. We will now begin the question-and-answer session. (Operator Instructions). Mr. Michael Meltz with J.P. Morgan, your line is open.
Michael Meltz - J.P. Morgan
Thank you. Three questions I think. On RMS, you mentioned a few things, a few reasons as to why it was a little soft in the quarter and you expect to persist. You mentioned pricing push backs from larger transaction customers. Can you talk a little bit there. Is it sector specific? Have you seen this in the past and just give us a little bit more clarity. And then I have two follow-ups.
Sara Mathew
Sure. Hi, Mike. How are you?
Michael Meltz - J.P. Morgan
I'm great, Sara.
Sara Mathew
Good. So let me look at this from both a customers' standpoint and I'll add to its label from a product standpoint, I think it's helpful to look at it both ways. Yes, in our RMS business, we've larger customers. We take primarily FIs in that case. We are seeing some pricing pressure from them. This is really because of the financial situation we are in. And we think it's mostly economic. I'm going to separate and distinguish that from reductions in usage because new loan origination is down and therefore they're just doing less business with us from that perspective. But, I'm trying to handle this just purely from a pricing standpoint.
In the other place that we're seeing some pricing is S&MS, on the commodity list and labels business and Hoover's. That is really not really different from what we expect. So, there is no surprises there.
These are commodity products and to some extent can be viewed as discretionary, and this again is along pricing. The area where we feel really good is our flagship product and DNBi and as you know that's targeted primarily to mid-sized customers and to certain extent but at a very smaller extent larger customers.
Pricing is holding up extremely well. We are what we would, where we thought we would be; double-digits for conversions to DNBi and then high-singles if you were to look at renewals. So in a net shell, if I were to sum this all up, we are seeing a bit more pricing pressure in certain areas than we normally face. But on the area that really matter to us we feel pretty good about where we are. Does that answer your question?
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