Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from Richard K. Baldry – Canaccord Adams.
Richard K. Baldry – Canaccord Adams
Can you talk a little bit about seasonality in the business that you see maybe from Q4 to Q1. I know you’re not giving ’09 guidance but if I look historically you’ve been a pretty straight sequential grower. It was a little skewed last year obviously by the acquisition but just in terms of the broader model is there any reason to think that seasonality either on the revenue or earnings side would change this year? Maybe on the earnings side with a particular eye to hiring patterns that could in theory create a seasonal downturn on the EPS?
Michael S. Herring
You’re correct, seasonally Q1 has seen a variety of expenses that happen in the quarter that tend to keep earnings flat quarter-over-quarter and we’re talking everything from our customer events and sales kick off events that we have in the quarter as well as certain tax fluctuations that are season. But I think it’s important to caution that it’s really hard for us to know what Q1 will be like in this environment and for us to speculate on that at this point would just be getting ahead of ourselves. So, we’d prefer just to not talk about what we expect for 2009 at this point. We will after Q4 is over.
Operator
Our next question comes from Michael S. Huang – ThinkPanmure.
Michael S. Huang – ThinkPanmure
Could you update us on the large wins that you guys closed in Q2 like Yahoo Japan and Circuit City? I was wondering whether or not these were contributing in a major way to revenue or will this be phased in more notably in Q4 or next year?
Michael S. Herring
They’re definitely going to impact 2008 revenue and would better primarily impact in Q4 rather than Q3 with the exception at some level with Yahoo Japan which was already implemented in some of the initial sites that we did at proof of concept. But, those large installations tend to take 90 days or more to install so they wouldn’t have impacted Q3, it would primarily be a Q4 event.
Operator
Our next question comes from Thomas C. Ernst – Deutsche Bank Securities, Inc.
Thomas C. Ernst – Deutsche Bank Securities, Inc.
You mentioned the datacenter migration is going to be completed later here in the fourth quarter. Are you through most of the risk elements with that migration or is there potential for disruption or up time? Then, maybe more broadly as a follow up to that, cap ex has been elevated now for a couple of quarters when you adjust for operating leases near $18 million. What should we expect for cap ex in Q4 when you’re done with the migration?
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