Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line John DiFucci – JP Morgan.
John DiFucci – JP Morgan
I have two questions. The first one has to do with this quarter and I think the other is sort of looking out in the general environment. Both Vivek and Murray, TIBCO by some accounts anyway can be categorized as sort of a poster child for risk in this environment. You are a relatively small software company with some big deal exposure. You have big exposure to the financial services vertical but you continue to post results that are better than many would suspect or than you would expect given the characteristics of the company. Can you just address that? As you guys know there is a lot of volatility around your stock and it seems like operations are a lot more steady than would suggest by the stock volatility.
Vivek Ranadivé
I think that is a good point. If you look at us today versus a year ago we are a lot stronger company in terms of if you look at our time based revenue, revenue that is not one-time. So services revenue, maintenance revenue, term license revenue, it is about 65-70% of our revenue at this point. So if you look at our customer base, we get 60% of our license revenue, 60-70% comes from customers we already have many of whom have to renew ELAs and the new term licenses and so there is a great deal of certainty in that type of revenue.
Three, if you look at the roll that our software plays even in the financial services industry when you look companies that go out of business and then get bought they have to keep running a software even when they are turning the lights out. So, some of the deals we got were from companies that were actually out of business but they had to pay for their licenses in order to keep their trading flows running. So we tend to be not a ?nice to have? but an absolute ?must have? in terms of what these companies do.
Then you look at the diversity of the clients that we have in both geographic terms as well as in vertical market terms and size terms. It is pretty well spread out. I think the real clincher is the value that is delivered by the software. As you know, you know us well; this is really a very, very high value software. We are closing deals with companies that are out there avoiding in terms of just losing revenues and customers and so on. They still need our software to keep running and keep getting new customers and to keep holding onto the customers that they have.
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