Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Andrew Steinerman with JP Morgan. Go ahead please.
Andrew Steinerman – JP Morgan
Hi gentleman. Obviously Protiviti has a real shine here. And I was wondering how you couch Protiviti within your guidance, the things that drove the incremental revenue in the third quarter, are those the type of drivers that could drive sequential growth for Protiviti in the fourth quarter given that your overall guidance is kind of flat to down revenues sequentially?
Keith Waddell
Well, Andrew, the big driver of the increase in the third quarter just ended was more internal audit, internal controls, and SOX work. That typically in the fourth-quarter it remains seasonally strong, although there is some thinking that as companies mature in their ability to comply with SOX that it becomes more of a third-quarter than a fourth-quarter matter.
But the bigger point we would make about the fourth-quarter is that it is a shorter quarter than the third quarter. It is shorter by about 4%. I would say, about 4 is a shorter quarter, our guidance clearly at the top end, which shows some sequential growth. We were encouraged by the September, the early October trends, not only in Protiviti but in staffing and – but for the fact that there is at least 2.5 fewer billing days, we would clearly give higher guidance at the top end.
Andrew Steinerman – JP Morgan
Right, and just to clarify, you said $4 million of cost improvement expected in the fourth quarter, so SG&A will be $4 million lower for Protiviti fourth versus third?
Max Messmer
Direct cost plus SG&A combined will be $4 million less.
Andrew Steinerman – JP Morgan
Got it. Thank you very much.
Operator
Our next question comes from Jeff Silber with BMO Capital Markets. Go ahead please.
Jeff Silber – BMO Capital Markets
Thanks so much. In your prepared remarks Max, who talked about your clients or companies only being able to cut so deeply before affecting their business, does the also apply to your business as well. Have we seen the end of the cost-cutting or will there be more?
Max Messmer
First of all, on our clients, we talked about that last time and my personal view has been that the typical CEO has cut quickly and deeply this time. So that I don't think there is a lot of room left to run the ship very well if they don't add staff once there is even a slight pickup in demand.
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