Question-and-Answer Session
Operator
Your first question comes from Nathan Schneiderman - Roth Capital Partners.
Nathan Schneiderman - Roth Capital Partners
I was hoping you could start us off talking about what exactly happened to maintenance revenue in the quarter? I don't recall seeing you take such a sequential decline before. Could you talk through that issue?
Raymond Panza
As you'll recall last quarter, we said that 8-9-10% year-over-year growth on maintenance was not typical, and that there are asset mix issues, currency issues, timing issues, and that we would expect that to get back more to normal, which would be in the mid-single-digits and that that would regress. All that happened was, we regressed back down to more of a normal change on a year-over-year basis. Wasn't unexpected; a tad lower than maybe we overall expected, but a decline was absolutely expected for the reasons I mentioned.
Nathan Schneiderman - Roth Capital Partners
To what extent did you have catch-up maintenance payments last quarter that did not recur this quarter?
Jack Noonan
There were not material catch-up payments in this period, and again I'd just point out, we looked at revenue in total, license, maintenance and services; at the end of the day, we're a software company serving the customers with selling software, focusing on new license revenue, and what we focus on is the fact that we produced record revenue for the quarter. The maintenance is one aspect of that and it continues to represent 42% of the overall revenue of the company.
Nathan Schneiderman - Roth Capital Partners
Last quarter you gave 2007 guidance of $285 to $295 million. If I've done the math right, you're now at $285 to $287, so you've taken it to the very low-end. Can you talk through the dynamics that have led to the change in guidance to help us understand that?
Jack Noonan
Sure I can. As you know, the economy itself has a number of uncertainties built into the fourth quarter just given what's been happening in the financial markets and elsewhere. The fact of the matter also is in the second quarter and third quarter we did come in slightly below the mid-point on our guidance but clearly within guidance, within what we expected, and so our current guidance is the visibility that we have at this stage.
Nathan Schneiderman - Roth Capital Partners
And then final question for you, you had a surprising sequential growth in professional services. Can you talk to that change? What drove that and, as I recall, you had intentionally tried to shift business towards partners going back a little more than a year ago. Are you changing your stance in that or is this a one-quarter anomaly?
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