Question-and-Answer Session
Operator
(Operator's instruction) Our first question comes from Vivek Arya with Merrill Lynch.
Vivek Arya - Merrill Lynch
Couple of questions, first some housekeeping question and then some product and strategy questions. First, in terms of housekeeping, Nachum how should we model the share account for Q3 and Q4? If I am not mistaken, your convert roughly start kicking in at this EPS level. So, how should we model the share account?
Nachum Falek
Yes, I will look first. It is true when and if the convertible kick in, we need to add the shares from the converted but remember that on the EPS calculation, we need to take out the interest that we obtained on the convert only on the calculations. So, basically, it will be a little bit dilutive but very linear and I do not believe it will have any significant influence in the next quarter in terms of following EPS.
Vivek Arya - Merrill Lynch
So, how many shares should we be adding and how much should we be clawing back?
Nachum Falek
I am not sure yet obviously it depends on the profits that we will make on the third quarter so it is too early for me to know if it will kick in. Assuming it really we will need to add $6.8 million shares.
Vivek Arya - Merrill Lynch
Okay and how much interest?
Nachum Falek
It is 2% over the $125 million.
Vivek Arya - Merrill Lynch
Got it and then how should we model the interest expense? I believe we have this new bank loans.
Nachum Falek
Yes, so basically we have been on, I do not want to get into the specific details but all in all since we deposit then so back to back the interest is very, it is not a significant on our interest income.
Vivek Arya - Merrill Lynch
Alright. Now, Shabtai, what is your view of carrier versus enterprise spending compared to your views from three months ago? What have been the positives? What have been the negatives so far?
Shabtai Adlersberg
Well, we really do not see much change and we really do not see different spending present between two different spaces. On the enterprise space, there are a lot of activities that goes on. On one side with products, on integrating more product into the solution and then working with global system integrators that says those solutions but no change on that part but on the other hand also, we sense it will work and responding to our season projects to service providers. Again, I think we have mentioned before that with the lot of activity in Latin America, in Europe, in Asia Pacific but all in all, if I have to judge it in the perspective, I do not see any major change.
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