Question-and-Answer Session
Operator
(Operator Instructions) The first question is from Mark Murphy of Piper Jaffray.
Mark Murphy - Piper Jaffray
Thank you. Harry, are customers pushing back on the rates for consulting or is this -- do you think that this is essentially a function of utilization rates?
Harry Debes
No, it’s a function of there’s less short-term demand. I think people are simply at this point questioning some of the projects that they ordinarily would have perhaps more easily approved and are simply second-guessing whether this is the appropriate time to approve the project or not. And I’m talking about services engagements here, not software license approvals.
Mark Murphy - Piper Jaffray
And when you referenced the idea that the economy really didn’t impact you through August but you believe that that’s changed in September, is that based upon looking at your bookings result for September, kind of the linearity in September? Can you talk to that or is it just based upon extrapolating off of the stock market and headlines out there?
Harry Debes
Yeah, it’s based on reading the newspapers and watching the news and listening to all of the various commentaries about what’s happening not just in America but now also in Europe and other parts of the world.
I think in these times, probably most companies are having a meeting to determine what investments they should proceed with and what investments they should postpone and so we don’t want to be caught by surprise with that. We want to make sure that we manage our business in accordance with the current trends.
Mark Murphy - Piper Jaffray
So also -- so if we put a lot of credence in that deterioration of the environment, it feels like you are heading into a year where license revenues should be down year over year. We’ve heard your comments on the likely trend, on the services side of the business. Can you help us with the sensitivity of maintenance growth to license growth? So in other words, if your licenses are down say 10% or 20% this full year, how do you think the maintenance revenue line would perform?
Harry Debes
Okay, so first of all, we did not say that our license revenues are going to be down. In fact, license revenues year over year will grow. I will give you the details about that at the end of our second quarter.
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