Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Aaron Schwartz – J.P. Morgan.
Aaron Schwartz – J.P. Morgan
I had a question about how you think about the balance of growth and reinvestment. Obviously you held back a little bit here in the quarter and obviously things have gotten a little different this year than probably a lot of us expected but if you look at your budgets going into next year should we assume a continued very, focus on expenses and you’re going to manage to the margin or can you just walk us through some of the inputs that you think about as you plan your, as you put together your plan beyond more than just a quarter?
Dean F. Goodermote
This is Dean speaking. Not sure what next year brings quite yet but I would think there might be some margin compression because we do want to continue to invest in the future. So certainly in the engineering area we would probably add some resources although not rapid expansion like we might have if conditions still are tough. And we probably don’t need to be as aggressive in the sales area as we were last year when we staffed up to that level.
There could be still a small opposition so it’s possible if reduced revenue growth is still there, that there should be some margin compression but I’d still think we’re in a strong operating position for a company our size. I’m not talking about going into single digits or certainly not losing money in any case. Does that answer your question?
Aaron Schwartz – J.P. Morgan
In terms of your acquisition strategy you’ve done a handful of very smaller in size transactions but does the environment change at all your strategy or are you constantly looking for technology type of acquisitions to bring into your portfolio?
Dean F. Goodermote
It might change. There’s never been a strict rule of not to look at something else, companies that might be more revenue generating have tended to be too big for us to swallow. They might prove to be opportunities for us now if they have related product carries that we can push through distribution if they come down in price which they should.
Aaron Schwartz – J.P. Morgan
Last question for me, a specific question on the guidance. You achieved at the midpoint your non-GAAP income and earnings targets here but it seems like the year still comes down and I’m just trying to reconcile those two, if we should assume some incremental expense here in Q4 that maybe wasn’t in the model previous to today.
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