PLATO Learning, Inc. Q1 2009 Earnings Call Transcript

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2009-03-03 18:37:16.0

Tags: Call Transcript, Quarter, Earnings, PLATO Learning Inc., Research & Development, Operational Accounting, Business Operations, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Bob Evans - Craig-Hallum Capital.

Bob Evans - Craig-Hallum Capital

Few questions; first I apologize I interrupted a little bit at the beginning but could you give me the PLE statistics that you gave at the beginning again?

Robert J. Rueckl

Yes, we gave, total customers added to PLE in the quarter were 71 and those are school districts; 31 were existing PLATO customers and 40 were new PLATO Learning customers.

Bob Evans - Craig-Hallum Capital

Okay and have you gave a sense of order size for those new customers?

Robert J. Rueckl

We did give order size for our large deals.

Bob Evans - Craig-Hallum Capital

I did not get that. Then orders, I think you gave some order metrics as well.

Robert J. Rueckl

Well, yes. Total PLE orders were $5.6 million plus 40% of those were renewal orders, being in the balance of convention or new customer orders and our renewal rate on a dollar by the end of the quarter was 88%.

Bob Evans - Craig-Hallum Capital

And that $5.6 million, what was that compared against last year?

Robert J. Rueckl

Yes, up 38%, $4 million last year in the first quarter. Yes, I said about half of that was volume, volume increase and half of it was, of the increase was longer subscription terms in the quarter.

Bob Evans - Craig-Hallum Capital

So term and volume, okay, alright. I guess, nice to see the subscription growth that impressed with the subscription margin, how should we view that going forward? Certainly it will be conservative from a modeling standpoint but the 60%, a little bit better than 60% that you did this quarter, should that be a sustainable level?

Robert J. Rueckl

Oh yes, it should be. I do not think we will see it go up this year. We talked about our 1.3 release, a very exciting release. It was one of our larger releases. That was released in December so that will start getting amortized to subscription cost and revenue actually a little bit in Q1 it did and then going forward. So, that will probably bring our margins down a little bit in Q2 but then we will continue to have subscription revenue growth which will even develop.

So that is a long answer to say that they should be able to stay around the 60% range.

 

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