Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Tim Brown from Roth Capital. Please go ahead. Your line is open.
Tim Brown – Roth Capital
Hi. Morning guys.
Vikram Gulati
Morning, Tim. How are you?
Tim Brown – Roth Capital
Good, good. I just want to touch on a couple of areas I guess, first, can you give a little bit more color on the macro demand environment and certainly out of SAP that things appear to be slowing down, I think first in the US and over in Europe. And I’m just curious going forward into the end of fourth quarter and 2009, can you just give us an idea of how you think that could affect the business?
Vikram Gulati
Sure, Tim. I think we did come out with some guidance or some numbers earlier – about a month ago, in terms of where they are seeing their revenues grow. And obviously, we are seeing that people are possibly rethinking in net new investments and in net new software, right? I mean, SAP purchase is like a capital expense purchase. And in these times, people would obviously question those given (inaudible) on the overall macroeconomic front. But our business is – it’s dependent on what happens on SAP, but in some ways it is also independent of what happens to SAP in the very short-term. It’s like when people are not buying some new cars, people who are in the business of keeping old cars running do well, right? So we see that impact coming through to us where we continue to have to service accounts in implementing newer modules that people had bought but not implemented, in making sure that we are maintaining the overall SAP environment as best as we can. So that business continues.
However, with continuously slowed investments in net new software promised (inaudible) Oracle over continued quarters, two, three, four quarters, then obviously that will have a trickle down effect on our own demand. But since we operate in an area where we are involved with maintaining and managing the SAP environments and doing add-on projects, we don’t see as much of an impact.
In many cases, net new implementations of SAP were becoming far and few in the marketplace over the last few years in any case, right? So what SAP has just come out with doesn’t seem to have an immediate impact on us but if this continues over let’s say four quarters, then obviously the trickle down impact will be there. But as of now, we are not seeing a direct correlation between what they are seeing in terms of license issues and our revenues which are most services oriented.
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