Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kathryn Huberty – Morgan Stanley.
Kathryn Huberty – Morgan Stanley
We didn’t see R&D come up sequentially or year on year as expected. Why is that and what are the projects that drive it higher in the fourth quarter and then as a follow on, given the strength you’re seeing in U.S. and EMIA should we expect that more broadly you loosen up the purse strings a little bit going forward given the growth opportunities?
Stephen Scheppmann
What we were expected to see in Q3, we had some projects, some R&D projects that we had the opportunity to push off into Q4, and this really related to materials for new projects that we weren’t at that technologically feasibility stage, and so we pushed those purchased out into Q4. They total about $6 million that we will continue for new product development, new initiatives, new opportunities in the R&D area that we will see in Q4.
So that’s the big bulk that moved from Q3 to Q4, and we effectively manage those purchases out of Q3 into Q4 and we will expense them in Q4.
As we see the market, if the market continues to evolve or stabilize, we continue to have a pipeline of new opportunities that we look at in Teradata Labs, and we’ll continue to evaluate those from a prudent basis as to what investments we can make given the current market conditions.
So yes, the Teradata Labs has a good backlog, a good pipeline of opportunities and projects and we’ll continue to evaluate those in a prudent manner in which we did in 2009.
Kathryn Huberty – Morgan Stanley
As we think about the fourth quarter, I understand you haven’t changed the full year revenue view, but given the deals you were able to sign in the third quarter and the pipeline, is the risk to the upside on revenues going into the end of the year?
Stephen Scheppmann
No, I don’t see any risk on the upside. There’s been as Mike mentioned some stability in the U.S. and the America’s market. We see that stability continuing. I think the profile; the risk profiles are pretty consistent in Q4, Q3.
Kathryn Huberty – Morgan Stanley
I know it’s early to have a full view on 2010, but you’ve made investments in sales teams and partners like SAP. You’re continuing to broaden the product line. Comps are getting easier. Currency becomes a tailwind next year. So why would it be reasonable to assume that you get back into that 7% to 9% long term revenue growth range as we get into 2010?
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