Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Kevin Doherty - Banc of America Securities.
Kevin Doherty - Banc of America Securities
I guess just to kick things off; maybe based on some of the conversations you are having with your customers how are you thinking about the subscriber count relative to where it is at right now? Really I guess is there anything out there that suggests we shouldn’t see some of these sequential declines of 1,000 or 1,500 users maybe over the next few quarters?
Philip Hadley
I think what we do here is focus on what we can control and as Peter was describing the product line we have and where we are headed in the marketplace there are just awesome things for us to focus on. Our client opportunity when it comes to Marquis is quite positive and we have even though on a net basis you saw a net decline in clients and a net decline in users on the positive side we had lots of positive experience in the client base. From a marketplace perspective I don’t know what the future holds but I think it is important for us to just continue on what we see as opportunity.
Kevin Doherty - Banc of America Securities
Maybe just to follow that up if we are going to do some sensitivity analysis, when you do lose an existing user how much revenue is lost kind of relative to what you get from that marginal new users for a workstation? That $6,000? Also relative to kind of the company average ASV of about $16,000 per user per year. I’m just trying to get some sensitivity, not just the new customers you are not bringing on but when you are talking about an existing customer that would go away or existing user that would go away.
Philip Hadley
We are fortunate that we have a business model where the seat part of our revenue is significantly less than half of our total revenue so it certainly is not a one-to-one relationship between the percent of seat loss and our ASV subscriptions. The subscriptions vary dramatically client by client depending on how large the installations are. I think if you were to characterize this cycle versus the last cycle I don’t think anybody on this call would argue we are in a much more difficult environment than we were last time and as you can see I think as a business we are doing quite well in this part of the cycle.
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