Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of George Sutton – Craig-Hallum Capital.
George Sutton – Craig-Hallum Capital
You suggested Q2 should or could mark the bottom with stabilization into Q3. Could you give us some specific guide posts you are looking at that might confirm that suggestion?
Ted Fernandez
It is really our ability to convert the current pipeline that we have right now. We have opportunities in front of us that if they convert the way we believe they will that would allow that to happen. I think you said right. Should or could is right. In this environment obviously everything lacks certainty but we believe that opportunity is clearly there for us.
George Sutton – Craig-Hallum Capital
Just to be clear, the problem is not with your pipeline. Your pipeline in your view is as large as it has been. It is simply the conversion of the pipeline to business?
Ted Fernandez
Absolutely. Now the real question for us is how much of it will ultimately convert or not. To give you some color, we went into March with 16 large transactions that at this point as we sit here today we have converted 12 of those 16. A portion of them closed in March but not nearly as many of them as we had hoped. A nice number closed in April which likely resulted in a pretty decent April sales activity. Obviously we continue to pursue the balance. There are only a couple that we believe have actually gone away. If you take just that example of those 16 clients and when the client’s decision extends or when it comes in smaller amounts when their commitments are in smaller amounts it simply provides for more down time. It is harder for us to plan. It provides for more pockets of non-chargeable time and then results in the lower reported revenue.
So that is really what we hope that as the economy recovers, as we see gradual improvement in overall economic behavior simply clients will go back to making decisions the way we are traditionally accustomed to them making. We clearly didn’t see that in March and we will have to see how it plays out in Q2 but we know the activity is there for it to stabilize.
George Sutton – Craig-Hallum Capital
You mentioned your conference coming up soon. Is there a way you can give us a year-over-year comparison in terms of attendees last year versus how many you would anticipate this year?
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