Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Huang from Thinkequity.
Michael Huang – Thinkequity
Hey, guys, a couple questions for you. The first one, so if you think about $10 million of license revenue through the balance of the year on the low end, what would be the biggest lever to drive that kind of modest improvement relative to what you did in Q1? Would it be large deal improvement or is it activity with new customers, or is there something else that you are doing from a sales messaging standpoint that could help you achieve that?
Pete Sinisgalli
You know, Michael, I would think the most important variable in front of us is a stable or a somewhat stable macro environment. One of the things we wrestled with in the first quarter was some of the conflicting messages about the financial segment, the ability to borrow and the impact that had on our customer base.
So I would suggest to you that leading variables certainly outside of Manhattan's control is the overall macro economy and having some stability in the economy. I think over the last four weeks or so we've started to see some of that and we're cautiously optimistic that that will hold, but I think the biggest variable will be the ability of our customers to have some confidence in the environment in which they're working.
Now, having said that certainly we would expect in more normal times, as we have in the past, to have several million plus dollar deals in the quarter, historically we've had three to five and historically Q2's been a strong quarter for us for license fees.
We'd also expect in a more stable economy that new customers would be willing to commit capital to supply chain improvements, in particular in some cases since those initiatives have been delayed for several quarters. So we would think a combination of a more stable macro environment would lead to several large deals closing in the quarter, and more new customers willing to commit to important supply chain initiatives.
Michael Huang – Thinkequity
So when you actually look you at the cross-section of your pipeline, can you talk a little bit about the various vertical exposures that you have and maybe help us understand the product mix within there, as well? Specifically, I was hoping to better understand how much of that pipeline is with retailers and how much is outside of that and would you feel more comfortable in one vertical versus another?
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