Question-and-Answer Session
Operator
[Operator Instructions]
The first question is from Woo Jin Ho, CIBC World Markets, your line is open.
Woo Jin Ho - CIBC World Markets
Thanks. Dick, you have indicated in the prepared remarks that the Pro/E upgrades and the module revenues were significantly below expectations in the quarter this had been a source of incremental Pro/E revenue since last June. Given the results and the outlook do you think that this particular portion of the Pro/E business has run its course?
C. Richard Harrison - President and Chief Executive Officer
Well, I am not sure if I understand the question. You mean the growth that we had the last four quarters or six quarters? Are you asking if that it has run its course?
Woo Jin Ho - CIBC World Markets
No, I am specifically speaking about the Pro/E upgrades and modules business.
C. Richard Harrison - President and Chief Executive Officer
I actually don't think it has run its course. I think there were just some timing issues on some larger deals that didn't really come in. I mean there is seasonality with respect to contract renewals with our installed base customers, and larger deployments of the product development system itself. So I don't think that it has run its course.
Woo Jin Ho - CIBC World Markets
Okay. And Neil, it seems that the revenue per employee, the quarterly run rate for revenue per employee has been declining since December of '06. Now, the cost actions being implemented in the fourth quarter, were they planned regardless of the Q3 shortfall, and have you expanded those cost actions as a result of the reduced outlook?
Neil Moses - Executive Vice President and Chief Financial Officer
So two questions. First of all, I don't view revenue per employee as a very relevant metric for PTC, because as we globalize our workforce, that metric really becomes a less relevant way to evaluate the Company's performance, so that is the first comment I would have.
Secondly, with respect to the actions that took place in the fourth quarter, we had this globalization initiative ongoing anyway, and we were expecting to take action with respect to that globalization initiative in the fourth quarter. We did accelerate some of the actions that we plan to take in response to what we saw happen in the third quarter, that is true, but generally speaking, we were headed down this path anyway.
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