Question-and-Answer Session
Operator
(Operator Instructions) Our first question will be from Bob Stimson. Your line is now open.
Robert Stimson - WR Hambrecht + Co.
Steve, thanks for the more detailed comments on the revenue breakdown. I think that helps a little bit more. Should we assume on the revenue side if we’re comparing apples to apples, i.e. less a couple big clients, that that’s kind of the normalized growth rate in terms of what you are seeing? Is it more in the 15% range, a little bit lower than that? If you can just give me some guidance there, and then I just want to ask an income tax question.
Joseph C. Lawler
Bob, I’ll give you a brief answer to that. What we believe is pretty consistent with what we’ve been telling everyone on these calls and that is that we think the market is growing in the high single digit to low double digit range. We think that’s the best long-term indicator for where our growth will be. We’d like to believe that we’ll gain share as we go along but at this point, we think that high single digit to low double digit is where we’ve got to get to.
The churn in our business, which has resulted in flat revenues, has been a problem for us, as you well know. So now what we are seeing is some good underlying growth. You take these two programs out of there and that 15% is good underlying growth but we don’t -- and of course, Japan is in that 15% as well, Bob. In fact, if you take the Japan number out of there, I think it’s closer to 12%.
Robert Stimson - WR Hambrecht + Co.
Okay, because I’m just trying to reconcile as I look -- I’m just trying to reconcile my quarters a little bit and as I look at the January quarter, and you back it out a little bit, I think if you use like a 14% growth rate, you come up with a pretty good number so I think we’re almost through the January and the April quarter will kind of be that -- until we get more on a ?normalized? trajectory for growth.
Joseph C. Lawler
And Bob, the other thing that obviously we’re giving you guidance on is we’re saying $1.1 billion to $1.15 billion in revenues, right? And if there’s $135 million, $136 million of those prior programs, you can calculate where we’ve sort of pegged the guidance for growth this year.
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