Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Jim Janesky – Stifel Nicolaus.
James Janesky – Stifel Nicolaus & Company, Inc
Yes, hi, this question is for Mike McGowan. Mike can you, you’ve been working with Oxford and in the industry for quite some time can you give us an idea of what the expectations can be as we move into, through the fourth quarter and into 2009 what the weaknesses and opportunities are of your company now versus let’s say the last cycle? I mean obviously the technology bubble is the last cycle had a lot to do with probably more significant declines but I think that folks are most worried about the IT segment as part of On Assignment and how that’s going to act in a cyclical down turn?
Mike McGowan
Sure Jim I would be glad to comment on it. I think you’re right. First of all let me go back to the 2001 recession last time. You are right I mean that was the perfect storm if you will, problems within the labor market so the whole Y2K bubble, the Internet bust, 9/11, et cetera.
Caused a lot of problems for us as well as the rest of the industry, so, previous recession to that in 1992, we actually continued to grow revenue and profits so it’s hard to compare the 2001 recession with what we are doing now.
As Peter mentioned and I mentioned we’re seeing a little slower demand but nothing really significant at this point so I don’t really anticipate again a huge issue as I mentioned our model is strong based upon our telecenter model as we can still go and find clients that are continuing to spend money based upon our model and be able to do that.
So I don’t anticipate at this point a significant threat if you will at this time if you will, based on what we’re seeing today.
Peter Dameris
Jim, you know, this is Pete I would have to add from my experience from the [Metamore] days it’s just, it’s important to reiterate that our model is just so much different than a lot of the other IT staff augmentation firms in that you actually saw our margins expand.
You actually saw the client concentration decrease, no customer makes up more than 2.3% total revenues for Mike McGowan so for us to have a significant retrenchment we’re going to have to loose 350 customers.
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