Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question today comes from Reik Read of Robert Baird.
Reik Read – Robert W. Baird
Hey, good afternoon. Pat, I think you touched on this in your comments, but maybe you can give a little bit more detail in terms of how much of – if I look at the guidance and seasonally down, which is unusual, how much comes from macro? How much comes from the currency, and can you talk a little bit about Europe seeing some declines. What are you seeing in North America?
Patrick Byrne
Well, I’ll let Mike comment on that. I think the way to think about North America, just to answer that first, is we’ve seen a lot of growth this year, as I said, 19% year-to-date. We don’t think that that kind of growth rate will continue, but this will look more like sequentially low single digit and flat with Q3, that sort of thing.
In terms of currency, I’ll let Lanny comment on that about where we are with assumptions going into the fourth quarter for currency. Mike, maybe you can contribute to the EMEA business outlook.
Michael Wills
Sure, no problem. Reik, I guess what I’ll do is based on your question regarding both EMEA and North America, the assumption going into it is beginning mid-Q3, like many of the other folks that we participate within this industry, we began to see demand signals that were clearly signaling longer selling cycle decisions and softness, just general softness in demand not exclusive to a particular piece of our business, meaning enterprise larger projects versus run rate. It was across the board and virtually uncontained to a specific vertical market. It was across all of our served markets as well.
In looking at North America, we clearly this year had a lot of progress in terms of growth over prior year. As we look at the demand signals and we look at a lot of our primary go-to-market partners, specifically, our major distribution partners and we combine the data points that we’re all seeing from the demand signals from our channel partners specifically that are serving 60-plus percent of our revenue base right now in North America, the demand signals are certainly a lot softer than what we had going into Q3. So we have to pay attention to that, and we believe that it’s a prudent aspect as we kind of face the wrap-up for the year and going into next year.
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