Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Manesh Tamarijine - Oppenheimer.
Manesh Tamarijine - Oppenheimer
A few questions if I may. One clarification, does your guidance for ’09 include commission payments from SAP and if so by how much do you see as SAP’s contribution?
Ofer Segev
Yes, that include. We assume that we will get something and we don’t know exactly how much, but we’ll have to wait. It’s probably going to take another month and so before we know the results of ’08.
Manesh Tamarijine - Oppenheimer
When do you see this commission payments coming in? The first quarter itself or is that going to come?
Ofer Segev
Yes, if it comes, we think its Q1.
Manesh Tamarijine - Oppenheimer
Okay. Can you also possibly breakup your headcount by region and where do you see groups driven headcounts going up during 2009?
Ofer Segev
We expect those mainly in India. That says as you saw mainly in India and somewhat in Eastern Europe in our development centers.
Manesh Tamarijine - Oppenheimer
Can you remind me again, what’s your target are for the year?
Ofer Segev
Actually, we didn’t give any targets for the year, but it’s going to be few hundreds.
Manesh Tamarijine - Oppenheimer
Okay, on a more somber note, have you seen any impact on your business from the ongoing war in Israel?
Sachi Gerlitz
I would classify the impact of the war in south of Israel in two ways; the system integration and application development segment and go-to-market that could be affected; the Israeli commission part and the defense and homeland security.
The length of the defense and homeland security has benefited from the recent development in south of Israel, by increasing demand from the initial defense in Israel and for business it was a good development. For the commercial part, I would say the effect of marginal. We had about 80 people out of the 2,700 people that where (inaudible) the utilization was effected marginally. So that part of the market, I don’t think that there was any significant effect.
Operator
Your next question comes from Ziv Tal - Oscar Gruss.
Ziv Tal - Oscar Gruss
Could you please discuss the pricing pressures in separate geographies and some color about the competitive landscape?
Sachi Gerlitz
I would not make any much differentiation in different geographies regarding price pressure and I would say that customers are divided into two groups, though they got into some sort of a budget constrain of their loan and the rest are jumping in the same train and using their opportunity to put pressure on the vendors. We see price pressure coming in Israel and Eastern Europe, as well as in North America. So, we do not distinguish between any of the geographies and what’s your second part of your question?
- To read the full transcript on Seeking Alpha, click here »



