Entrust Inc. Q2 2008 Earnings Call Transcript

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2008-08-25 02:13:19.0

Tags: Entrust Inc.

Question-and-Answer Session

Operator

Thank you. Ladies and gentlemen, we will now conduct a question-and-answer session. (Operator instructions) Your first question comes from Josh Jabs from Roth Capital. Please go ahead.

Josh Jabs -- Roth Capital

Yes, good afternoon.

Bill Conner

Hey, Josh.

Josh Jabs -- Roth Capital

It sounds like things are progressing fairly well on the cost control side. Is the company still targeting that 15% operating margin exiting 2008?

Bill Conner

Yes, kind of the 10% to 15% ROS for Q4 take off into next year.

Josh Jabs -- Roth Capital

Okay. So we should think of it as heading out of Q4, maybe around 15%, but maybe something slightly below that for the quarter overall?

Bill Conner

Yes, it will be between 10% and 15% somewhere.

Josh Jabs -- Roth Capital

Okay. And on the -- it sounds like some change is taking place in the services line. Can you break out what percentage of the service revenue came from maintenance in Q2? And then, how much exposure professional services you have in the financial vertical?

Bill Conner

Yes, so these services are about 63% of total revenue, being around 15.5, Josh. We were just over $10 million in support. So you can figure $10 million plus a bit. So you can kind of break it out from there. And it's up about 10%, as we said for the half-over-half.

Josh Jabs -- Roth Capital

Okay. And then the --

Bill Conner

By now it would have been a little, almost $21 million, between $20 million and $21 million for the half.

Josh Jabs -- Roth Capital

Okay. And then, what's -- can you help quantify what the exposure to professional services is in the financial vertical?

Bill Conner

We don't track it by that as you see. By having a large deal like DnB NOR and the other one we have already closed in July, we will probably pick up some of what I will call the larger business, SI, PS type business. Now, one of those was done with a partner so we will be bringing that partner up to speed and with them on the PS part of that. But from the large deal standpoint, that will probably pick up. As we bring more channels on board around IdentityGuard, those channels in the FIs, or even in the enterprise are picking up some of that business. Jim Fields and team have done a real good job in the US channels of building that piece, and more of those transactions, especially in the IdentityGuard area, for them to pick up the smaller transactions and to do the PS part of that.

 

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