Question-and-Answer Session
Operator
Our first question comes from Tom Roderick - Thomas Weisel Partners.
Analyst for Tom Roderick - Thomas Weisel Partners
This is actually Chris in for Tom this afternoon. I just had a quick question if you could remind me, sorry if I missed this in the last call, but I noticed a sequential decrease in the software license and maintenance line. Could you maybe give us a little color on whether that was related to, I don’t know,how you’re recognizing the acquisition-related revenue or there was anything that factored into that?
Randy Wiese
You’re talking about the $9.8 million decrease down to $9.1 sequentially?
Analyst for Tom Roderick - Thomas Weisel Partners
Yes.
Randy Wiese
There’s nothing significant there. It can relate to the timing of recognition of certain software sales. So there’s nothing significant that’s going on between the quarters.
Peter Kalan
And Chris, those are not coming from the acquisition because those business models were not (software-oriented?).
Analyst for Tom Roderick - Thomas Weisel Partners
Okay, so those are all the revenues from ComTec and Prairie Interactive are going to go into the processing lines?
Randy Wiese
Yes, entirely.
Analyst for Tom Roderick - Thomas Weisel Partners
Okay. And I know you modeled the lower operating margins and you mentioned you were going to do a little more R&D in ?08. Can you give a little color as far as what areas your customers are asking to do this for, what you’re going to focus on? And then also, do you believe there’s going to be any upside to the operating margins, or are you pretty committed to spending the R&D?
Peter Kalan
Chris, first of all as we look at the marketplace and work alongside our clients we feel like there are business issues that they’re facing in the new competitive market that they haven’t seen before. And we do want to make sure that we bring products to market on an accelerated basis to make sure that we’re helping them in their customer service and in their delivery of products. So we think it is important.
It is broadly across really the ACP platform with the new functionality that we’re bringing in and everything from the desktop that’s used by the CSR all the way down to how orders are managed and how the interactions occur with the customer service rep.
So it’s functionality that we’re bringing to market that is core to what their needs are. I don’t anticipate at this point that the competitive environment that our clients are facing is going to change substantially and that would cause us to slow down that investment.
- To read the full transcript on Seeking Alpha, click here »
