Question-and-Answer Session
Operator
(Operator instructions) And we will take our first question from Samuel Wilson with JMP Securities.
Samuel Wilson – JMP Securities
Hi, good afternoon. Two questions for you. One for Mike, have you – when you talk to customers right now are you – is your sense that they’re canceling budgets, they’re maintaining their current budgets, they’re looking at trimming ?09 budgets. What is thought process here? I know you mentioned that you think the environment is challenging for the next six months, but just when you’re talking to customers on storage budgets what is going on in real time right now?
Mike Klayko
Well I think there is – I think customers right now have an introspection or taking a look at where they actually need and separating between must have and nice to have. Must have is getting funding, nice to have is not.
Samuel Wilson – JMP Securities
Got it. And then Richard, one question for you, I didn’t understand fully did you say that the non-GAAP EPS for ’09 is without interest expense on the debt?
Richard Deranleau
That is correct Samuel. We’re trying to do is make sure you have a clear comparison of apples-to-apples to the Analyst Day. So this way you can go back and use the guidance I just gave you, compare it directly against the Brocade standalone that we talked about at Analyst Day to see the changes. Then we have also given you on the slides today the amount of interest expense related to the $1.1 billion acquisition facilities. So, you have the ability to go either direction.
Samuel Wilson – JMP Securities
Got it, So – one last question, when as you quoted in your reported non-GAAP numbers for ’09, are you planning on excluding interest in the non-GAAP numbers, right?
Richard Deranleau
Well, we’re still considering that but at this point what I’m leaning to do is the acquisition-related debt after the acquisition closes will be brought back into our non-GAAP numbers.
Samuel Wilson – JMP Securities
Perfect. Okay, great. Thank you.
Richard Deranleau
Thanks, Sam.
Operator
(Operator instructions) And we will take our next question from Mark Moskowitz with JPMorgan.
Antony – JPMorgan
Yes, thanks very much. This is Antony [ph] for Mark. Going back to the current business environment, what sort of business are you seeing from new installation build-outs versus the completion of existing build-outs and what sort of applications are driving the new installation activity.
- To read the full transcript on Seeking Alpha, click here »
