Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from John Kraft – DA Davidson & Co.
John Kraft – DA Davidson & Co.
Yoram, first one for you. Talking about the higher G&A for Q2, is that a run rate that $5 million-ish? Is that a good run rate going forward because of those GAAP rules?
Yoram Bibring
Our G&A typically alternates. It goes up $200,000 it goes down $300,000. So it's going to be varying up 200 minus 200 and so on.
John Kraft – DA Davidson & Co.
Then onto the guidance, Reuven specifically said that you guys expect that the second half of '09 should see some growth over 2008, yet the Q3 guidance is really still down 6% or 7% or so. It implies that you are expecting a pretty good bounce back in Q4, am I understanding that right?
Reuven Ben Menachem
Well, we hope. As we said, we're seeing some movement with the large banks and when these deals get signed it takes a while to start recognizing revenue also, but we hope.
John Kraft – DA Davidson & Co.
Then regarding those signs, Mike, you said that it sort of looks like those signs are pretty universal across the product lines and geographies, but are there any areas that standout? Domestically it seems like there seems to be some loosening. Is that fair to say?
Mike Sgroe
We are seeing a fair amount of activity in North America in areas that previously we've been waiting for it to turn around a bit. So as an example, we are seeing banks looking at, we've had a number of conversations with banks around GPP as an example in North America, so in terms of the North America geography, we are encouraged by that.
As I mentioned and I think Reuven pointed out as well, cash management for us in Europe seems to be developing in a way that's encouraging as well. So once again, it's a little too early to say but we are seeing some signs to suggest that banks are looking at investing and these are, in some cases, fairly meaningful investments for some of the banks that we are talking to as well. So it's a little too early to say, but I would say we are seeing encouraging signs here.
Yoram Bibring
John, just one other thing, remember that last year Q4 was a down quarter so we really started to feel the heat in Q4.
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