Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from Corey Tobin - William Blair & Company.
Corey Tobin - William Blair & Company
One quick house-keeping thing and then a question on one of the opportunities you talked about. Bill can you just give us a little bit of color as to why the cap software increased so much sequentially and what should we expect in terms of a run rate level going forward?
Bill Davis
Yes Corey, we had in both our professional business and our enterprise business, development activity in part motivated by preparing ourselves for stimulus activity that saw a little bit of an up-tick in capitalization in again both those businesses. As I called out in the operating expense kind of baseline expectation, I think that the quarter was a little bit higher than I would characterize as normal run rate. So at $4.5 million I would back-off probably $1 million, $1.5 million in terms of what I’d realistically expect going forward into the fourth quarter.
Corey Tobin - William Blair & Company
So thinking about $3 million or so?
Bill Davis
Yes, that’s right; $3 million, $3.5 million.
Corey Tobin - William Blair & Company
Then finally on the scripts deal announced this morning, congratulations on that; can you give us a little bit of color as to what the opportunity is with respect to I believe you said Glen it was 2,600 affiliated doctors. Did I hear that correctly?
Do you have a sort of standard template contract in place that you can now use to go and sell to those groups or would it still be something you’d have to go out and sell to them individually going forward? I guess, I’m asking is there any opportunity, do you guys have any leg up or additional opportunity to reach into that base, given the agreement struck today? Thanks.
Glen Tullman
Yes Corey, first of all again we couldn’t be more pleased with the scripts agreement. I mean, their status as being one of the leading healthcare organizations in the world is significant, relative to their selection of Version 11. Relative to the non-owned physicians, there is an opportunity, both through Stark and the interest of these organizations to connect to all the referring Docs in their communities.
So you’re going see more and more of this as hospitals and hospital-based organizations want to make sure that they’re easy to do business with and consequently, they’re going to want to be connected to their highest referring Docs. So we’re seeing that there, we’re seeing that in the USF example about how they want to connect their communities and you’ll hear a lot more from us about connected communities and that strategy.
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