Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Rob Owens from Pacific Crest Securities.
Rob Owens - Pacific Crest Securities
First question for Dave today, did you given the geo-mix, North America versus rest of the world?
David J. Wagner
We did, but I am glad you asked. We had a real strong revenue contribution from areas outside North America, accounted for 39% of the revenue in the quarter which is the highest it has been since Q4 2005, and I think it is particularly meaningful if you consider the strengthening US dollar that was achieved in the headwind of a strong dollar, so we are really pleased with the performance, EMEA, Latin America in particular.
Rob Owens - Pacific Crest Securities
When you are pricing, are you localizing into all currencies, are you in US dollars in some regions?
David J. Wagner
We are in US dollars in many regions outside of continental Europe and the UK and Canada.
Rob Owens - Pacific Crest Securities
Okay, so we should focus on the pound, the euro, and the Canadian dollar?
David J. Wagner
Exactly right.
Rob Owens - Pacific Crest Securities
And then, with your headcount just around 400, can you give us a sense of what’s US, what’s Canadian, and then what’s European there, so as we’re watching currencies move, we can get a sense of what Op-Ex might do?
David J. Wagner
The mix really hasn’t changed, but has come down pretty evenly across the board. I think the mix would be pretty consistent with what we’ve seen in the past.
Rob Owens - Pacific Crest Securities
In terms of headcount?
David J. Wagner
Right, where they’re located.
Rob Owens - Pacific Crest Securities
And then question for Bill, relative to the federal opportunity, lot of noise around CMCI or what’s the government is doing in terms of cyber security, do you play into those opportunities, are you more around HSPD-12 and some of the authentication physical security aspects of what the fed is trying to do?
F. William Conner
Clearly, as you know Rob, we play in the HSPD-12, and the good thing is we like the noise we’re hearing and we’re hoping the ground swell and noise is going to end up in stimulus packages that are being drafted as well. So, we like HSPD-12. We think that will accelerate with this administration when they’re focused, because that is still one of the areas they need to lock down just because they are not done there. I think as you look at their focus in the new area around cyber security and the other initiatives, they’re going from perimeter to what you got to protect, and as you know, that’s where we play. So, I think as you look at how you locked out information and protect it, we’ll be there within the government and that should board well for us. As you look at the cyber security talk and some of the stimulus that they’re looking at, kind of the third area, Rob, I feel very strongly and we have been very opinionated on the hill that if you’re going to spend money in 62% of the stimulus bill, the first time was out in 2010 which was why it got such a bad rap, they needed to put more of it inside. We’ve been very outspoken to lead with the fed government as they say, spend more on locking down information and protecting stuff there where we can help, but also get on with the grid in healthcare and other areas where there is information exposed and data breach is still exposing, and then there’s infrastructure that frankly four years ago I was talking about as co-chair of the cyber security task force in working with DOE and others, and not a lot of money has been put up to do that. A lot of the labs have done good work as you all know and you wrote in your most recent report which use our technology, but there’s a lot more that can be done as you get out into the electrical, utility, nuclear, and water grids.
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