Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes the line of John Kraft, D.A. Davidson. Please go ahead.
John Kraft – D.A. Davidson
I guess my first question is on the product development line obviously a pretty significant drop there in the quarter, did something materially happen? Is that a reasonable run rate to accept going forward or should assume some sort of blend between what it’s been in the past and the Q4 results?
Johann J. Dreyer
John, what you’re seeing there is really the fourth quarter of 2006 was when we had a restructuring and this new team came into place and so when you look at the fourth quarter year-over-year comparison you’re seeing the full impact of that restructuring and a large reduction on the Enterprise side and then some reduction in fastilion development costs really the FSB solutions area. So I think the run rate you’re seeing in the fourth quarter is good. There’s certainly not any sort of plans for any sort of adjustments in any large order of magnitude in that line item.
John Kraft – D.A. Davidson
And then, I know you probably don’t want to talk too much about 2009, but just to give us a big picture view of State Farm in respect to just the general decline, do you expect another kind of 4 to 5 million reduction? Is that a trend that should continue or is it just too far out to even predict?
John A. Stone
I’ll take the State Farm question and then I’ll defer to Johan for anything else on 09. The decrease from 06 to 07 is really a reflection of the fact that the State Farm Bank was implementing Enterprise Release 35 during 2006 and that implementation ended in the first quarter of 2007 when State Farm went live on Release 35. And that I think is a reflection of the fact that we sell into multiple constituencies within State Farm and over the life of that relationship that’s been nine or ten years we’ve had high marks of revenue that exceeded $60 million a year. We’ve been low, we’ve been in the high 30’s and the range we’re in today I don’t really foresee it going much lower than the high 30’s but it’s certainly possible. It is one customer and it could decrease more, but I think probably – We’ve got good visibility right now for the time being and I would see it kind of hovering in that range, high 30’s to $40 million.
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