Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steve DeLuca - Spinner Asset.
Steven C. DeLuca - Spinner Asset Management
. Rick, does the $20.3 run, is that run rate revenue? So, that would compare to $20 million for the March quarter? Is that right?
Rick E. Russo
Yes, Steve, that’s very true. As you recall in the last conference call, I think we had $20.4, $400,000 related to some one-time pick ups from a deferral in the prior year. And this $20.3 would be our new established run rate going forward.
Steven C. DeLuca - Spinner Asset Management
And then just second on the Sunset of revenue, should we in our models assume about half a million a quarter, since you’re saying you’re going to go from $5 million in fiscal ?08 to fiscal ?09 to $3 million?
Rick E. Russo
With $3 million, the reality is that the Sunset products as are consistent with the cycle that we have on all of our orders, the majority of the Sunset loss will occur in the renewals that occur in Q3 and Q4. So, it’s pretty much along the same. It’s the loss of $3 million that we had expect to get in revenue in the Sunset products will run consistently with how the order intake goes, which is about 15/15, 45/25 type of spread.
Steven C. DeLuca - Spinner Asset Management
Mark, given the economic pressures people are under, are you seeing anything different from your customer base? It sounds like orders are good but can you give us a little color on how they’re going?
Mark J. Emkjer
A mindful of the macroeconomic issues, in fact, this past quarter I traveled all over Asia-Pacific; I’ve been in Europe a couple times and all across the States. We’re not really seeing an impact on our business at this point in time. And I really believe that part of the reason for that is if you look at what we’re doing with the scientific operating platform and informatics capabilities, it’s all about putting solutions in place that improve productivity, reduce cost and help to make more informed decisions. So I think in many respects we can withstand more of the downturn than most companies. In fact, perhaps flying in the face of it.
Steven C. DeLuca - Spinner Asset Management
. It sounds like you’re alluding to some bigger deals in your pipeline and it sounds like there’s some services wrapped around them. Does that mean you could recognize that revenue sooner because it’s purely services or will it really match with the software as you recognize that as well?
- To read the full transcript on Seeking Alpha, click here »
