Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Adam Frisch – UBS.
Adam Frisch – UBS
Wondering about the disparity between transaction and revenue growth in international and EMEASA and because that had been closing in prior quarters that obviously was a big reason for more positive sentiment on the stock. What happened in the September quarter and how do you expect that to trend going forward?
Christina Gold
As we look at the international there are two elements really that are working here. One clearly is the impact of the Euro which is about half of it in terms of where the Euro has landed at this point in time. The other part is we talked to was we saw revenue in terms of the principle per transaction being less which generates a certain amount of revenue from our F/X rates. Those two elements really caused that spread. I think as we move forward looking at the positioning of the Euro and the US dollar that will continue over a period of time.
Adam Frisch – UBS
That should continue into ’09 I guess as well?
Christina Gold
In ’09 we’ll give you guidance in January. I think the Euro, we definitely know the Euro is going to be a drag on us in ’09 the way its sitting right now.
Adam Frisch – UBS
What did you see in October versus the August, September trends that made you get more, let me ask a question, what did you see in October and how did it compare to September and August?
Christina Gold
October is going forward and so it’s really what we saw going into the third quarter. It’s really as we came through the third quarter we saw that the drop in terms of the amount of principle being set in certain markets and we also saw the big change in the Euro and the strengthening of the US dollar.
Adam Frisch – UBS
One of the highlights of this story has always been the strength and durability of the model you guys have laid out your plan very, very well and comprehensively in all your recent calls. You just withdrew the long term guidance that you gave four months ago due to some near term volatility. I’m not sure how to interpret or reconcile all those things because there seems to be a few conflicting messages there. Why the long term guidance?
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