Question-and-Answer Session
Operator
Your first questions comes from Ryan Daniels - William Blair
Ryan Daniels – William Blair
Congratulations on the great quarter. Merilee I wanted to ask you a quick guidance just to make sure I understand everything. First off on the revenue guidance, I know you took it up a little bit both on the low and high end, I’m just trying to figure out what was the primary driver there. I know you indicated that while within your range it was maybe towards the lower end in Q1 yet you’re still taking up your annual outlook. Is there anything specifically driving that?
Merilee Raines
Yes, the primary driver there is really I think the strength we’re seeing from currency. If you look at that and kind of [harken] back of what I had projected in January was that the impact of currency would be about 2% and now we’re thinking its going to be about 3% for the year.
Ryan Daniels – William Blair
Okay and then on the EPS side if we kind of adjust for the tax change, it also looks like you’re taking up your earnings guidance a bit net net on an operating basis and you mentioned that the margins are going to be a little stronger there but it seems pretty similar to the margin profile you gave us in Q4, again is there anything in the works there that’s kind of taking up that operating EPS guidance or was it just a better start to the year?
Merilee Raines
Well the start of the year was pretty much in accordance with our thinking in terms of bottom line as I mentioned that we did have some upside from our thinking on gross margin and the operating expenses were a little bit lower and I think what we just are feeling Ryan is that we’ve got a pretty good handle on the ability to really monitor our costs and keep those in check and so think we’re just feeling like the business is solid and strong and all of that just is contributing $0.02 to $0.03 of upside for the rest of the year from operating performance. Offsetting that is the impact of the change in our thinking about the tax rate.
Ryan Daniels – William Blair
Okay and then during the quarter you obviously, it looks like you expanded your revolver pretty significantly especially if we consider the accordion feature and I know you took up the share repurchase by another 2 million shares, are those two in tandem or maybe you’re getting more aggressive on the share repurchase or other uses of cash, are you seeing a little more activity in the M&A pipeline going forward that you might want to capitalize on, any color there would be helpful?
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