Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Alexander - Raymond James.
Brian Alexander - Raymond James
Rich on your annual guidance, just want to make sure I have this right. If you are reiterating $0.80 to $0.87 and the second half is going to be lower potentially than the first half, and I’m sure in the first half you did $0.42, but maybe there are certain charges that I’m not factoring in correctly, so I just wanted to see if that is the case that you did $0.42 in the first half and the second half is going to be lower, I guess I don’t see how you would be able to do more than 84 and I would expect the range to be 84 or lower?
Richard Fennessy
Yes, Brian actually if you do the rounding in the first half, the first half is actually $0.43 versus $0.42. So, on the guidance of $0.80 to $0.87, which as you know is the same guidance we gave on the last quarterly call.
Included in that is now an assumption that typical seasonality on the software business in terms of, as you know the third quarter will be the lowest quarter of the year relative to software, and then the new news relative to last call is the European marketplace is continuing to be quite soft, softer than we had anticipated last time because as you remember on our last call we said we anticipated the second half of the year to be greater than the first half.
Two things that drove us to position it the way we position it, one is we had a very strong second quarter, which is good news, and two is the EMEA marketplace is softening and we are concerned about that going to second half of the year, which is why we are trying to be more aggressive as it relates to our cost structure.
Brian Alexander - Raymond James
That’s helpful. I appreciate the color on the first half as well. So, as I look through the press release and listen to the call it just seems a little bit different in terms of transparency and disclosure, specifically around product mix breakouts, hardware versus software versus services, which in the past was always helpful given the different growth rates and margin dynamics associated with each of the segment.
So I guess I’m just curious why pull back on that disclosure. You did provide some additional color on the call but it was a little hard to follow in terms of whether trends were sequential or year-over-year. So, I guess, the first question is why not provide that in the press release specifically around your initiatives in software services and networking, and is it possible to just give us on the call the revenue breakdown by category?
- To read the full transcript on Seeking Alpha, click here »
