Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Nemeroff – Wedbush Morgan Securities.
Michael Nemeroff – Wedbush Morgan Securities
In your prepared remarks you had mentioned a point estimate of was that $535.0 million in operating expenses in fiscal 2009?
Dr. Mark N. Greene
That’s correct.
Michael Nemeroff – Wedbush Morgan Securities
You said that some clients are saying that the fog of war seems to be lifted. If that fog of war seems to lift a little bit and sales cycles start to begin in earnest, would you imagine that maybe you would see a bottom to the declines in the total revenue, maybe by the fourth quarter of this year and we would see more declines like we saw in the first fiscal quarter going on for the next couple of quarters? Is that fair to say?
Dr. Mark N. Greene
I think you’ve got the right logic. It’s difficult to get the timing right. We see puts and takes there. On the one hand, for instance, our scoring business shows some early signs of recovery. I think I mentioned a pick up in the mortgage re-Fair Isaac area as an indicator of good things possibly happening there.
On the other hand, when we talked to our customers in these interviews that we conducted a month or two ago, they don’t think we’ve hit bottom yet and they don’t think we will for a couple of months. So you put those factors together and we see our business sort of largely bumping around at current levels, plus or minus, and I’m not yet in a position to have the confidence to call a bottom.
But we know what a bottom will look like and we know what indicators will see in terms of a restoration of the credit card segments, a pickup in the mortgage segment, lending activity beginning to improve generally at banks. There are a couple of those macro phenomenon, that when you see them, will be good signs for our business. We were among the first types of businesses to get sick in this economic down cycle, we will probably be one of the early recoveries but we can’t time that yet.
Michael Nemeroff – Wedbush Morgan Securities
The cash flow during the quarter, down about 20% on the operating cash flow. Is that the magnitude of reduction you are trying to protect for the full year, relative to the last fiscal year?
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