Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Bryan Keane – Credit Suisse Securities.
Bryan Keane – Credit Suisse Securities
George, you talked about constant currency for international being at 10% to 12%, maybe a little bit of an uptick from the 9.7% reported, maybe you could just give us a little color on what’s in the pipeline and what could drive the acceleration there?
George P. Scanlon
Bryan I’d say certainly relative to what we reported in Q4, we actually had a tougher grow over year-over-year in Q4 related to a payment we received from one of our customers as a settlement for a delayed implementation so that actually benefitted Q4 ’07 by about $6 million. I think if you look at the growth rate with that factored in you end up back in the mid teens.
I think as we look to 2009 the 10% to 12% we feel is reasonable given the pipelines and given the overall economic environment. As Lee said, we’ve had success internationally in selling larger license deals to bigger banks and we’ve grown our card processing activity in Brazil pretty strongly. But, Europe and South America are not immune to what’s going on globally and so we think the 10% to 12% is a reasonable place to be. We’d like to hope for upside there obviously but that’s where we’re guiding right now.
Bryan Keane – Credit Suisse Securities
Any new contracts that will be coming on internationally that will help supplement the growth next year?
George P. Scanlon
Well, we had previously disclosed I think a $100 million number on earlier calls. With the exchange rate affect that number is closer to $80 million now. That would include the Bradesco conversion, Barclays, HBOS and some of the Asia Pac business that we sold that Lee referenced earlier.
Lee A. Kennedy
Bryan, there is also a number of deals that are currently in the pipeline that we expect to close over the next few months so that will also affect the margins and the profitability as we move throughout 2008.
Bryan Keane – Credit Suisse Securities
Then just finally for me, the EBITDA expansion of 50 to 100 basis points, can you just break that down a little bit? How much of that is restructuring versus eFunds, versus some other cost cuts?
George P. Scanlon
Bryan, as you’d expect it is a combination of those things. I think as we look to 2009 we’ve got some additional run rate benefit from some of the cost reductions that we took last year as well as incremental eFunds benefits. I’d say those aggregate to $25 to $30 million. The other manifestation of that is through lower cap ex. Our IDSW came down year-over-year as we took costs out that effectively was capitalized labor so we’re benefiting cash flow that way as well.
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