Question-and-Answer Session
Operator
(Operator Instructions) While we wait for your questions a reminder that you can listen to today’s conference in its entirety via instant replay by dialing toll free 1-866-340-70 or toll 1-203-369-0208 available through March 12th, 2008. You can also listen to a recording of today’s conference via the web at www.CMGI.com. One moment please for our first question. Larry Patrone – WR Hambra.
Larry Patrone – WR Hambra
Couple of questions, first in regard to the volume declines that you mentioned in your release and Joe that you talked about earlier, I’m just wondering if they’re specific or particular to certain verticals or you saw it across the verticals that you are serving today?
Joseph C. Lawler
The big chunk of the volume decline is the two previously disclosed clients that are no longer in our year-over-year numbers. The other one I think you’re going to be able to go in and take a look at our queue and you will see that there was one client who is a large individual client whose volumes did decline in the quarter, that client would be in our storage segment. I would not characterize the rest of the decline as being necessarily specific to any one particular category. We saw a little softness in consumer electronics, we saw a little bit of softness in software as well.
Larry Patrone – WR Hambra
Outside of the two clients, most of it was specific to storage?
Joseph C. Lawler
Precisely.
Larry Patrone – WR Hambra
What about the new engagements, or startup of new engagements, you mentioned that there are some potential delays going into the quarter that you didn’t expect. I’m wondering first of all are these new customers or new engagements with present customers? What are your expectations going into fiscal Q4? Do you expect them, I know you don’t have a crystal ball, but I’m just wondering if your expectations are for some of those to start up in the upcoming quarter or do you see this more as fiscal 09 startup?
Joseph C. Lawler
What we think, Larry, is as the cause of bringing down the full year guidance number really is these delays it’s taken a little bit longer to start up some of the new business that we had expected was going to be starting up early in the quarter. That’s why I said my comments were I think we’re going to be seeing later in the summer and early in the fall as we move forward. Our new business activity is robust and I’m not just talking about the pipeline there, I’m talking about the new business that we’ve actually sold. But some of these are relatively complex startups in multi-site locations and syncing up with the IT systems of our client as well as transitioning work from what might be another supplier over into our operations has taking a little bit longer. We are optimistic about the outlook, but yes I think it’s going to take a little bit longer.
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