Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Your first question is coming from the line of Steven O’Brien from JPMorgan. Please proceed with your question.
Steven O’Brien – JPMorgan
Hi, good morning. Thanks for taking my question. I would like to talk a little bit about the deferred revenue balance, which grew this quarter resizable $13 million in which I guess about $4.5 million that from AT&T. That increase was mainly in the current portion of deferred revenue. So, can we start to assume that demand might be slowly picking up in line with the Rich's comments on the RFP activity, carrier CapEx budgets at least in North America seem a little bit back-end loaded this year. So, is there some room for some optimism or ramping also this level in terms of revenue going forward?
Richard J. Gaynor
Well, if you look at the total deferred revenue balance, Steve, going up $13 million is obviously a positive indicator for us and being in the current portion is also positive for us. That being said, I wouldn't get overly optimistic on that, because it is within our normal range of deferred revenue being in the 80's, $90 million. So it’s a positive indicator, but I wouldn’t read too much into it, because it’s within sort of the normal deferred revenue range for us.
Steven O’Brien – JPMorgan
One actually on that same normal level, I mean that the aggregate deferred revenue including the long-term deferred revenue and sort of the same level, whereas Sonus' deferred revenue had been in the past when recognized revenue on the P&L was in the $80 million, $90 million. So I mean is there still a broad base of business that start to come through at some point in the future of these projects, stop getting pushed off?
Richard J. Gaynor
Well. Again, Steve, I would say as you pointed out, it is sort of a positive indicator for us at some level, because to reach the kind of numbers that we are expecting to get for the rest of the year. Obviously, we need to trade it little bit above better than our revenue numbers in Q1. So building up some deferred certainly helps us in the back half of the year. So I think it is a positive indicator that our plan for the year still remains relatively on track. May be Rich do you want to?
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