Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevane Wong – JMP Securities.
Kevane Wong – JMP Securities
Good afternoon, guys. How are you doing?
Michael R. Stanfield
Hi Kevane
Kevane Wong – JMP Securities
Nice numbers. A few things. First, I’ll give you a broader picture. Obviously overall market has been some issues. Have you guys seen any impact as far as subscribers? people coming off? It looks like the numbers are good, but I was curious on your general feel as far as the macroeconomy. Is it having any impact or really it seems to be negligible at this point?
Michael R. Stanfield
The only impact we’ve seen that was out of the ordinary was last year when we had a number of subscribers fall off at one client after they’d had the systems change and they put a number of those people on hold until later in the year and then decided to release them. If we back that group of people out of our numbers, our attrition rates seem to be holding quite well.
Kevane Wong – JMP Securities
Nice, okay great! Also, obviously, somebody is going to want to know a little bit more about Discover. I was curious if you could tell us as far as why are they leaving, are they going to a different provider, are they taking it in house? I’m just trying to understand why they left at this point.
Michael R. Stanfield
Well, we really don’t want to say very much right now. First of all, they are a client, and we expect them to be a client for a long time in one form or the other and hope to have them reupped as a client at some point in the future, but I think the only thing I can tell you is we had no ongoing dispute or any flare-up of any sort, so they made a business decision that they felt was in their interest, and we are concerned about the venture that we make a profit when we do things in our business and other than that, I don’t really want to speculate at this time.
Kevane Wong – JMP Securities
Even with them coming off, you are still increasing the top line in your guidance. You have another $10 million to be over $350 million. Is there a particular thing that is driving it? Is it the number of subscribers that is still coming on? Is it improvements in the other parts of the business – Screening International, etc., or just the acquisitions that are driving that?
- To read the full transcript on Seeking Alpha, click here »



