Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Corey Tobin – William & Blair Company
Jeremy Frazer – William Blair & Company
This is Jeremy for Corey by the way. Just wanted to get on the strong results, I know last quarter you talked about record number of decisions and I didn’t notice any comments along those lines this quarter. Although it appears just from the change in backlog that you had another strong quarter. I’m wondering if you could kind of give us a little bit of perspective about how this quarter compared to last quarter in terms of the strength you saw.
Boyd Douglas
Well it certainly wasn’t and I think I even said on the last call as well. You know, certainly didn’t expect to do that again. It was just a tremendous quarter, last quarter as far as contract signings. But it was a strong one as you can tell from the backlog, so we’re pleased to see that the momentum has continued.
Jeremy Frazer – William Blair & Company
And is there anything you can point to, as you talk to your sales people about why these last two quarters have been so strong. Relative to the last few prior to that, is there any high level trends you’re seeing that have changed?
Boyd Douglas
No there really haven’t, you know, I think this is just, demonstrates as well as any, probably any two quarters we’ve seen, that we just have natural ebbs and flows within this market. And we’re kind of on a high right now and a lot of people are making decisions and we’re earning a lot of that business.
Jeremy Frazer – William Blair & Company
And just shifting gears to items on the expense line, outsourcing margins, it looks like they improved nicely in the quarter. I wonder if, A, what’s going on there and, B, do you feel that it’s sustainable going forward? And then I also have question about the tax rate, it seems like that ticked down a little bit and I’m wondering if that’s sustainable as well?
Darrell West
On the tax rate, that dropped some from a actual filing a settlement of our 2007 tax return. It ended up a little bit better than we had anticipated. Some tax credits related to the hurricane a number of years ago were extended and we had not anticipated that happening. So that improved our tax rate some and we should see. The number that I gave, the 37.8% ,should be pretty close to what we’ll see for the year.
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