Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Greg Dunham with Deutsche Bank. Your line is open.
Greg Dunham - Deutsche Bank
Thank you. The first thing I’d like to hit on is the product cycle in the transition of Wildfire. How historically have the transitions been and what are your expectations going forward in this particular case?
James Heppelmann
This is Jim. There is not a huge disruption as we go from one release to another because as you know we sell professional licenses and maintenance. But what you’ll find out is for example if we launch a release, say Wildfire 4, it has new modules in it. Then we take those new modules back to the base. It takes a little bit of time to ramp that off. Then we’ll sell those new modules to the base over a period of time, and then over a longer period of time we’ll begin to saturate the opportunity and those modules will tail off. So it has virtually no impact on the maintenance revenue, other than to bolster it and keep it strong. It has little impact on new license sales other than it makes the product more competitive and it may increase our win rate, but it does cause a sort of bell-curve type distribution of module revenue over time. So I think the point Neil made during the conversation is that our module sales based on Wildfire 3 was slowing down, but now with the launch of Wildfire 4 we’ve got a set of new modules we can take back to the base again. So we expect module sales to climb in the coming quarters.
Greg Dunham - Deutsche Bank
That makes sense. And then on the maintenance front, that actually was a lot stronger than I would have expected. Is that due to renewal rates, or pricing, or? Can you talk a little bit about how that performed relative to your expectations?
Neil Moses
The maintenance business has performed extremely strong for really the past 12 to 15 months, Greg. This is Neil. Obviously the initiative of CoCreate helps there as well because almost two thirds of their business is maintenance revenue. Even excluding CoCreate, if you just look at organic constant currency maintenance revenue performance, we were up 7% year over year, which is a great number.
James Heppelmann
It really just means that customers are using the software, they like it, and they’re deploying it. The service is number two is good for the quarter, which increases the utilization of seats that are out there and bodes well for license revenue in the back part of the year.
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