Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question from John Difucci from J.P. Morgan.
John Difucci - J.P. Morgan
Mark, as you pointed out, guidance implies license revenue to decline as much as 10%. I realize you’re dealing with a tough macro-environment but if you look even with this quarter, relative to a lot of other software companies that at least you’re showing some growth. I’m just curious here, because as you’ve pointed out in the past and it’s easier to see how the end-market helps someone save money, just wondering is it over? It just seems surprising that growth would disappear in a market that appears to be very underpenetrated which at this point anyway, very little real competition although that, as you pointed out, that will come on over time. It just seems that this quarter, there is obviously uncertainty out there but to show a decline in revenue, I am just surprised to hear you say that.
Paul A. Maritz
This is Paul. Again, the challenge here is visibility. We’re being conservative here. What our contacts with customers tell us is that they themselves are uncertain and we’ve never seen this level of uncertainty before. I think this really is the case that at this point in time, CFOs across the board are trying to preserve cash and keep their expenses as low as possible and to keep as many options open. We’re obviously not immune to them. Mark, do you want to add anything to that?
Mark S. Peek
I would add, John, that if you look at another important point from the fourth quarter, that we added more new VI customers than ever before and this is a trend that continues throughout 2008 so by no means do we believe it’s over. Q1 of 2008 was a difficult time for us for a number of reasons not the least of which is a large number of ELAs that we closed in Q1 of last year and our expectation that ELAs will decline this year so the revenue is a little bit lumpier than Q1.
John Difucci - J.P. Morgan
Just a quick follow-up, Mark. I know that you mentioned Q4, I was just curious, was there any meaningful change in deferred license revenue?
Mark S. Peek
No, there was no meaningful change. It was about flat to the third quarter.
Operator
We’ll take our next question from Katherine Egbert of Jefferies.
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