Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Paul Ginocchio with Deutsche Bank.
Paul Ginocchio - Deutsche Bank
Just about contract value, the trend was absolutely better than I expected here in the quarter. Do you think you are going to make it through this downturn without seeing a year-on-year decrease in contract value?
And is there anything that the hospitals are telling you that the CFOs that would suggest that budgets are going to be cut going forward? Then, a quick follow-up on the interest expense line, why it was down. Thanks.
Michael Kirshbaum
This is Michael. On the first part of your question, on contract value, as you know it's hard to project forward contract value that are based on a mix of future sales and renewal performance and obviously the environment is uncertain right now. I think given the level of visibility we have in the business coming off our busiest fourth quarter last year, and contract value being relatively stable for the last several quarters, I think we feel comfortable with our guidance range on revenue for the year, but the exact contract value numbers, whether there is a little bit decline going forward, it's hard to say with any certainty.
Robert Musslewhite
Paul, on budgets, just to answer your budget question, I think we're talking about hospital budgets. We know through the eyes of our 2700 members what they're feeling, and we just had a bunch of CEOs in our offices over the last couple weeks.
I think what we're hearing from them is the environment is still tough. They are very nervous about volume performance, obviously a few exceptions, but in general worried about volumes on outpatient and surgical procedures.
Lot of hospitals seeing a higher proportion of uninsured and rising bad debt, and as a result, I think almost every hospital out there has felt budget pressure and is looking at cutting costs, in some cases pretty large cost cuts.
Michael Kirshbaum
Lastly, on the foreign exchange, Paul. Over the past year we've seen some success in selling many of our US-based programs internationally, seeing the investment we made in extra sales people they're paying off. Obviously, as you know over the last six months exchange rates have fluctuated with the dollar strengthening felt substantially. So in our financials this quarter, what do you see as an adjustment made to our AR balance on the balance sheet to reflect the current exchange rates, and the resulting is an expense through the income statement and net income.
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