Question-and-Answer Session
Operator
(Operator Instructions)
David Gennarelli
While the Operator is polling for questions, I would like to announce that we will be at the Credit Suisse conference in Phoenix December 3rd and the Barclays conference in San Francisco on December 9th. And now I will turn the call back over to the Operator for the first question.
Operator
Thank you. Your first question comes from the line of Steve Ashley with Robert W. Baird.
Steven M. Ashley - Robert W. Baird
I guess my first question will relate to the guidance for the next quarter, obviously below what the consensus was looking for. Is there any extenuating circumstances related to that guidance? For instance, in terms of the pipeline that might need to drain itself? Just wondering how indicative that quarter is of us looking out beyond it and representative of what we can expect, or was there anything one-time in nature about the guidance?
Carl Bass
No, I don’t think there’s anything particularly one-time about the guidance. I think what we see in terms of demand out there -- this is where we forecast rather than anything peculiar about this quarter. I mean, I think the most important thing is what we have seen and to give you any indication of when things turn around, I think what we feel is we need to see functioning financial markets. We need to see liquidity in the system. Our customers depend upon it to run our business and I think truthfully if you look right now, we don’t have functioning financial systems to the level that allowed normal businesses to do their job. And in an environment in which people can’t get credit, the first things on their minds is not how much more software do I need to buy.
Steven M. Ashley - Robert W. Baird
And then in terms of the restructuring that sounds like it will take place during the fourth quarter, is there any benefit from the expense savings baked into the earnings guidance into the margins of the fourth quarter, or is that -- I’m just trying to understand the timing of when those benefits will be realized.
Carl Bass
You will most likely see more expenses in the fourth quarter as we go about cutting expenses. You always see a spike before you see the realization. I think you will start to see it in the first quarter and then throughout the rest of the year.
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