Question-and-Answer Session
Operator
Thank you. (Operator instructions). Our first question is from the line of Tim Brown with Roth Capital.
Tim Brown – Roth Capital
Hi, good morning.
Vikram Gulati
Good morning, Tim.
Tim Brown – Roth Capital
Maybe you could just start out, the Q3 to Q4 decline in revenues, how much of that was related to the pound, the depreciation of the pound and the other foreign exchange?
Vikram Gulati
About $1 million of the decline in revenue from Q3 to Q4 could be attributed to the forex issues from a pound and kroner perspective.
Tim Brown – Roth Capital
And the rest is from projects getting pushed out?
Vikram Gulati
Projects getting pushed out, the number of days that we had from a billable perspective, I think the number of days contributed to a significant amount in this Q4, because the way the New Year and the Christmas got aligned, almost had a 15 day washout from a billing perspective. So that and some of the projects getting pushed out and delayed contributed to the rest.
Tim Brown – Roth Capital
And are any projects actually just getting cancelled, have you been seeing that too.
Vikram Gulati
There were a couple of projects that had – when it gets deferred by more than 6, 7, 8 months; we deem it more as a cancellation. So there were a couple of projects that did get cancelled, which is effectively deferred for the middle of 09. For all practical purposes, they were cancelled.
Tim Brown – Roth Capital
Okay. And then have you seen any of that, the projects pushed out, are they coming back on at all here in Q1, or what is?what’s it like now?
Vikram Gulati
Some of them are, so some of the places that we had a deferment in Q4 started now in Q1. So it is sort of an up and down scenario where something gets pushed out and starts, something else gets pushed out. So I think we're in a bit of a cycle then where people are being extremely cautious about where do they sort of invest their dollars, and we need to just make sure that we are aligning ourselves to what they need.
On the other hand, we bagged some pretty large projects. I mean very early January we bagged about $7 million projects, almost £5 million project from a life sciences company in Northern Ireland in the UK around a full blown Oracle implementation, which will last about a year and six month, about 18 months out. So there are people who are clearly investing in net new large significant projects. At the same time, we have this issue where people who had committed sort of postponing their projects and pushing them out a couple of quarters.
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