Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Tim Fox – Deutsche Bank.
Tim Fox – Deutsche Bank
My first question is around guidance and per your comments around the environment. Can you talk a little bit about, if you can help quantify, whether the asset under management portion of your pricing is going to be significant enough headwind do you think given the fact that many of your client’s assets are down markedly over the past year? How can we think about that in relation to renewals that are coming up in 2009 as these clients sit down to negotiate their renewals?
Stephanie DiMarco
One of the things is we have been very pleased with our pricing model and the resilience of our pricing model in this period because we are not as highly correlated with assets as our customers are and some other service providers are. While we do have some correlation it is not a one-to-one correlation so as you saw in Jim’s discussion our assets under administration went down about 6% which is certainly a lot less than the market was down. The reason for that is a lot of our asset under administration contracts have minimums associated with that and so it is difficult to give you a single number but we just don’t think it is that significant in terms of the correlation with asset values.
Tim Fox – Deutsche Bank
In a related question, around pricing bands, more so on the term renewal side how much of an impact do you think the pricing band shifts might be for the term renewals that you see in 2009?
Stephanie DiMarco
Those pricing bands tend to be pretty wide so we would expect it to maybe have the same sort of impact as we have seen with assets under administration. Not that material.
Tim Fox – Deutsche Bank
Just regarding Tamale, I know we talked roughly about an annualized number there. How should we think about Tamale contribution in 2009? Obviously it is a little bit more of a discretionary spend one would imagine. Can you give us some general guidelines as to where you think that may end up for a contribution in 2009?
Stephanie DiMarco
We baked Tamale into the guidance numbers we have given. We gave specific guidance after we did the acquisition of $17-20 million in top line contribution for 2009. We expect it to be below that. That was before the market really crashed through severely and we are not going to be breaking that out specifically going forward but we have baked in the lower guidance into the overall revenue guidance. So a little bit lower than our expectations when we did the acquisition but that said we are seeing a lot of traction for Tamale. I would say that the meetings I have been in where our customers see the product they love it and we get a lot of comments about how I don’t see how I can operate my business without this. I have seen it. We think the pipelines are good. It is maybe not the best buying environment but we look at this as a very long-term part of our product strategy and we think the take up of that product is going to be excellent over time.
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