Question-and-Answer Session
Operator
(Operator Instructions) And you first question comes from the line of Mark May with Needham and Company. Please proceed.
Mark May - Needham and Company
Thanks for taking my question. Hopefully you can hear me. Can you hear me?
Eric Ashman
Yes Mark, no problem.
Mark May - Needham and Company
Thanks. One of the questions, had a couple here; operating expenses in the second quarter, the cash operating expenses were down slightly from the March quarter. In the second half you have a number of initiatives that you talked about that all seem very positive; site redesign, you’re looking to continue to enhance content etc. Just wonder what the trend would be in operating expenses? Should we expect those to pick up in the second half and maybe give us a directional feel for that?
Eric Ashman
In the second half of the year, our expectation for operating expenses will be consistent with what you’re seeing in the first half of the year. The Q2 and Q1 results are a pretty good average for where we expect to lie. Many of the initiatives that we talked about on call ultimately are capital initiatives for this year that will start to impact in 2008 as some of these initiatives come live on the site.
Mark May - Needham and Company
OK, and you talked about acquisitions as a vehicle for growth and you seem to suggest that something, that your pipeline there is pretty active. Can you talk about sort of the pricing environment? Are you happy with the types of businesses that you’re finding out there? Because a lot for the deals that have been done recently have been done at valuations that are higher than your own I’m just wondering, you mentioned a (inaudible) if you could maybe add some flavor.
Eric Ashman
Yea Mark, I think you and we’ve said this in the past; we will not do a deal that is not going to be accretive to us. So, what we referenced to that what we’ve seen in the pipeline and the deals we’re looking at will be accretive to us and we’re kind of stretched pretty wide in what we’re looking at but we’re pretty confident that in our pipeline now will come to fruition on one or two of these in the not too distant future, that will be accretive to us.
Mark May - Needham and Company
- To read the full transcript on Seeking Alpha, click here »
