Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Keith Weiss – Morgan Stanley.
Keith Weiss - Morgan Stanley
How are you guys doing against your annual target, which I believe was 10 to 12 new retail customers, on the optimization side of the business?
Mark Culhane
Our target for the full year is 8 to 12. We are tracking towards that. We are very comfortable that we will achieve that goal this fiscal year.
Keith Weiss - Morgan Stanley
On the southern marketing side, that was down quarter-over-quarter if you look at it on a non-GAAP basis. Is that where you were behind on your head count? And can you give us an update of where you are as far as quota-carrying sales reps? And have those plans coming for the rest of the year.
Mark Culhane
First on the first part of the question on the sales and marketing. I think it’s largely Q1 was a little bit probably larger than normal just given the departure of John Crouch, our head of sales, so all of those costs were accrued in our first quarter.
Second, on a head count basis we’ve got about 17 folks, pretty consistent with where we thought we would be. And then from a head count perspective being behind plan, largely I would say in the development area, and somewhat in professional services, which has largely been caught back up.
Keith Weiss - Morgan Stanley
Oracle recently announced the acquisition of Advance Visual Technology, which I believe was in the space planning. Did that increase their competitiveness with you and maybe you could just segue into how the competitive environment is looking out there.
Daniel R. Fishback
Certainly we looked at AVT and there’s other companies out there in that space as well, generally described as what they call [math] assortment, how do I lay out my store and visually look at that. No applied math of any real merit in there. We, candidly, don’t see that as an important part of our portfolio and subsequently passed. I mean, we see no definitive change in the competitive landscape today. I mean, I continue to be surprised by the lack of execution that both Oracle and SAT have in our space and their ability to do applied applications. And I think certainly the AVT thing, candidly, is just graphical. Think of it as kind of CAD/CAM software for the visual layout of the store.
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