Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Rob Brown with Craig Helen. Please go ahead.
Rob Brown - Craig Hallum
Good afternoon. You talked about your subscription margins starting to increase sequentially every year. Could you give us a sense of where those could go as you kind of get more ramped in the system. Is there a target margin you’re kind of looking at?
Robert J. Rueckl
Well, we’ve always said that our subscription margins get into the mid-60’s and probably higher than that. So we still have that as the target. We won’t get there this year, but we’ll continue to see those increase this year up to around the 50% range. In the fourth quarter, I don’t know that we’ll get there on average for the year, but we’ll continue to see those increase.
Rob Brown - Craig Hallum
Okay, great, and then also your license revenue level has declined to a relatively small level. Do you see this declining down or do you see it stabilizing in this area?
Robert J. Rueckl
We continue to see it declining down. I’m not sure, I think within 2008 we’ll continue to see the seasonality, so I think it will go up in Q3 and Q4 relative to Q1, but I think we’ve said in the past that ’08 looks like the same level or percentage decline that we saw from ’06 to ’07. That’s in the 50% range, but I’m going to qualify that now by the PSG. The PSG is a perpetual product and we aren’t prepared to talk about the levels of PSG sales this year, but that was not in our original plans and Mike can talk a little bit more about that, but that wasn’t in our original plan for 2008. Something that came up earlier in the year. So that may actually moderate the decline, perpetual revenue year over year.
Rob Brown - Craig Hallum
Okay, good, and then lastly, in our cash burn, are you still expecting to be a modest cash burn for the year or no cash burn for the year?
Michael A. Morache
We’ll still have a goal of being a little bit cash flow positive for the year. So yeah, modest burn or no burn.
Rob Brown - Craig Hallum
Good. Thank you.
Operator
Thank you. For any further questions or comments, please press star 1 now. Mr. Morache, we have no further questions.
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