Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Tim Fox - Deutsch Bank.
Tim Fox - Deutsche Bank
First question was around guidance, just to be sure Jim, you mentioned that revenue guidance has been maintained from continuing operations. Did I hear you correctly there?
Jim Cox
Yes, Tim.
Tim Fox - Deutsche Bank
Okay so there is no change there and secondly, on the operating margin guidance, 18% to 20% from continuing ops, you obviously posted two quarters now north of that and I am just wondering what would impact that margin coming down in the second half and why would we not expect to see kind of continued strength there on the margin line?
Jim Cox
Sure Tim. So, one of the elements that the first half of the year benefited from was the releases from the term service deferral that was 2 points this quarter and about 2 points last quarter as well; and obviously, we would not plan or guide for those releases throughout the rest of the year but more fundamentally, we know there is a number of places where we want to make investments in the second half of the year specifically marketing expenses were down in the first half of the year, we are going to go out on the road and we are meeting our customers in six cities in the third quarter. That, we are going to spend money there and so we think that this guidance range provides the right balance between what we know we want to invest in on the second half of the year for our long term result against the continued good, prudent operating performance that we have done so far.
Tim Fox - Deutsche Bank
Got it, okay and second question I guess for Stephanie and for Pete, just on the demand environment, obviously bookings seem to be tough. Renewals are tough. You said you are seeing signs of an improvement. I am just wondering from a pipeline perspective, is it more just still the conversion rate that are holding you back or new opportunities slower to come to you? I just want to get a little bit of clarity on the nuances around your improved confidence in the outlook.
Peter Hess
Yes, this is Pete. The backdrop is that it is still a tough environment so in general, there are fewer placement deals taking place than we have normally seen and clients are not moving to APX as frequently and quickly as we have normally seen. So, the backdrop is that it is still tough but I think you are right, the conversion rate, the sales cycles are in process now maybe you would not have said that six months ago, or even three months ago, we got more in process. They take longer. You are not as sure you are going to convert at the end as you used to be because times change and budgets change and outlooks change.
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