Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brett Huff - Stephens Inc.
Brett Huff – Stephens Inc.
Can you tell us a little bit about when the revenue from these two big contracts that you're doing with corporate banking in the Enterprise segment, how that will roll on over time?
Johann Dreyer
This is really dependant on the delivery of the professional services. We can't give you exact guidance on that on this call, but typically what we see with deals of that size is that the revenue rolls in over a year or two, 15 month period.
Brett Huff – Stephens Inc
You signed a deal this quarter. Have you already have teams on site?
Johann Dreyer
We have taken very little revenue on those licenses and in one case, not any revenue at all.
Brett Huff – Stephens Inc
It's great that you've come in at the high end of the guidance that you've talked about. You talked about continuing doing some investments. Can you give us a sense of either both Enterprise and Postilion, could you focus on Enterprise, it sounds like you've made some of that investment already that showed up in some of the higher costs of this quarter. Incrementally going forward sequentially will that product development line continue to rise or is that a run rate kind of investment already, and the same kind of question on the Postilion side.
Johann Dreyer
It's pretty much a run rate investment at this stage. It might go up slightly, but what we intend doing is as some of these programs that we're doing this year, specifically targeting at customer satisfaction, as those successfully complete, we are looking towards in 2009 taking some of that investment, some of the people and moving them into an area where they can actually help drive the professional, the license and professional services throughout. So what we see is the product investment. Part of that product investment will in al likelihood be converted to professional services costs in the next year.
Brett Huff – Stephens Inc
In looking at the $600,000 settlement that you called out, can you just tell us a little bit about that?
Johann Dreyer
Basically what happened is that this was a customer sold through one of our resellers in our international division. There were some questions around the project and whether it would complete a year ago and whether the bank would go forward with that. That has now been fully resolved and we reversed that.
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