Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Thomas Carpenter of Hilliard Lyons.
Thomas Carpenter - Hilliard Lyons
It was nice to see the revenue increase in the quarter, even though none of the revenue from those deals is recognized yet.
Brian Patsy
That’s a good thing, having improved revenues and better visibility on the recurring revenues going forward.
Thomas Carpenter - Hilliard Lyons
One of the things that you mentioned in the past two quarters was the number of deals that you have out there, our customers were your vendor of choice. Can you update us on that metric?
Brian Patsy
Last quarter we had 13 deals in the pipeline where we were vendor of choice, co-vendor of choice, or in contract negotiations and out of those 13, six have come out of the backlog of deals in contract negotiations; four of them were announced, one of them was the deal that carried over from last year that we anticipated to recognize revenue and one, frankly, we lost that was in the category of dual vendor negotiations. During that same period we added two more where we are in that category of vendor of choice contract negotiations or co-vendor of choice, so the net total now is nine, but we hope to close between now and then end of the year. Some of these might be towards the end of the year and could possibly carry over into Q1.
Thomas Carpenter - Hilliard Lyons
Okay, so fourth quarter you guys were seven, at the end of the first quarter you were 13 and now you’re nine, so net, net we are still up to your date, even though you closed four.
Brian Patsy
Correct.
Thomas Carpenter - Hilliard Lyons
That’s positive. The revenue was good this quarter; I was a bit concerned about the operating expense up 23% year-over-year, 25% quarter-over-quarter understanding your architecture and some of the other product developments and you guys expect that to moderate in ’09, the absolute dollar amount, is that correct?
Brian Patsy
That’s correct. We are beginning the moderation process yet this year.
Thomas Carpenter - Hilliard Lyons
Okay, then maybe you and Paul can walk me through the cash and the accounts receivable, if there have been any changes since the end of the quarter, but you guys started off the year pretty solid on the cash side, now you’re down to a little bit under $400,000. You do have a decent slug view in accounts receivable and contract receivable. Maybe you can update us on that and talk about the revolver and just you guy’s thought process and where you want to be between now and the end of the year on cash.
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