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Guidance Software, Inc Q1 2008 Earnings Call Transcript

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2008-05-21 11:45:14.0

Tags: Guidance Software

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We will go first to Josh Jabs with Roth Capital.

Josh Jabs

Hey guys, good afternoon. Nice quarter.

Victor Limongelli

Thanks Josh.

Josh Jabs

Last year, I know you kind of went through this in your prepared comments, but yet though you did have a break from normal seasonality in Q1. Can you just discuss the linearity in Q1 of this year?

Victor Limongelli

Yeah, sure. You want me to compare to last year or to just discuss this year?

Josh Jabs

Maybe versus what you normally expect in Q1?

Victor Limongelli

Yeah. We had most of our business on the Enterprise side comes in in the last month of the quarter and it was certainly true this quarter even probably more or so than normal, probably a little bit more backend loaded than in normal quarter. And of course, the other parts of our business EnCase Forensic and services pieces are more evenly spread throughout the quarter. But on the Enterprise side, we typically are seeing half of our revenue coming in on two to three weeks of the quarter and that was certainly the case this quarter.

Josh Jabs

Okay. And then, headcount expectations looked to be a little bit up from prior comments for the full year. How much of this -- you’ve got a lot rolling out on the new product side, and how much of that is really focused on R&D and for the headcount that’s not focused on R&D, what’s going on there?

Victor Limongelli

Sure, so most of our hiring for the year is completed at this point. We added positions, I think Frank mentioned, mostly in R&D and sales. On the R&D and tech services side in Q1, we added 12 positions. Half of them were developers and a couple more developers even in April. So, we’ve had some growth there. We got a lot going on on the R&D side. On the sales side, we added 19 positions. I think we talked last time about the new inside major account manager position and seven or eight of those were that position, a new position for us, and then we added about a half dozen mid market managers on the sales side.

And then, the other adds were small numbers here and there. There were four added in professional services and a couple in training. Going forward, I think we will add -- I think we added for the year probably two-thirds of the hires for the year came in Q1. So, maybe another 20 or 25, maybe on the upside 30, for the rest of the year. Again, we will be adding in the R&D side. We’ll add four or five professional service folks depending on how that business grows, couple of training folks, a few on the sales side, but not too many. We've added a few channel managers as well for international sales.

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