Interwoven, Inc. Q3 2008 Earnings Call Transcript

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2008-10-27 08:58:12.0

Tags: Accounting, Professional Services, Call Transcript, Earnings, Operational Accounting, Financial Services, Finance, Seeking Alpha, Accounting, Professional Services, Call Transcript, Earnings, Operational Accounting, Financial Services, Finance, Seeking Alpha, Interwoven

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Chad Bennett with Northland Securities.

Chad Bennett - Northland Securities

Just a couple of questions, first of all, can you talk a little bit and I do not know if it is John, Joe, or Max but can you talk a little bit about linearity of the quarter? If you want to do it by segment, that would be great or overall. And in kind of what you saw there and maybe talk about on the professional service piece of your business, if there is any difference in the demand environment especially more recently between legal versus or maybe more of the accounting and other sides of the professional service business?

Scipio Carnecchia

Sure, Chad. It is Max, thanks for noticing the performance in Q3. Let me take them in the order you asked them. Linearity of the quarter, I think for Q3 which of course there is some seasonality associated with holidays there, we experienced 2008 Q3 linearity very consistent with what we have seen in the last three or four years, so no change there. On the professional services industry solutions demand from a legal versus accounting, accounting is a relatively new market for us that we continue to expand in and we have continued to make good strides there. I tell you that the demand in legal continues to be strong. I think we have covered this many times, but Chad, the dynamic there associated with the Legacy competitor who has literally exited or abandoned the market, has continued to create more and more opportunity for us. So, there is what I would call thousands of law firms out there of just about every size around the world, who with every passing months and every passing quarter, have a bigger reason to move to another offering as the legacy system that they have is no longer supported on an operating system, a piece of hardware, an application server, a data base, a web browser. So demand, our pipelines continue to grow.

Chad Bennett - Northland Securities

Okay. Good. And then maybe question for John. John, can you express in a simple line, can you give more detail in the impact of Discover Mining and kind of back that out how things look?

John Calonico

Yes. So if Discovery Mining added three or four days of additional DSO to our number and so, if you took that out, what you would see is that we are right in line with what we have said is our normal range, which typically runs anywhere from the mid-50s to the mid-60s. So, collections continue to be very, very strong for us. Our cash flows were very good in the quarter and Discovery Mining because we did not have full quarters of revenue but we had the entire receivable balance added a few days.

 

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