Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question comes from the line of Derrick Wood with Wedbush Morgan Securities. Please go ahead.
Derrick Wood – Wedbush Morgan Securities
Hi guys. How you’re doing?
Steve Springsteel
Hi, how you’re doing, Derrick?
Derrick Wood – Wedbush Morgan Securities
Good. Nice job on the operating margin side.
Steve Springsteel
Thank you.
Derrick Wood – Wedbush Morgan Securities
I guess, since I started with that, I am wondering if you could give us any – would you expect any material changes in gross margins or OpEx for next quarter?
Pete Norman
Well, the OpEx run rate has come down sequentially. But I would expect they’d stay about the same as the next couple of quarters. And we said we would expect to be around non-GAAP breakeven next quarter.
Derrick Wood – Wedbush Morgan Securities
Okay. I think gross margins is really going to be a function of the license mix. Okay. And, well, on the services margin, do you feel pretty comfortable about that going forward?
Pete Norman
Yes, I mean, the last few quarters we have been above our target.
Derrick Wood – Wedbush Morgan Securities
Okay. And I guess you mentioned that the pipeline in North America has grown 10% sequentially. Could we infer that, I mean it’s going to be dependent on closure rates, but that you could show, because of this, you could maybe show another increase in bookings next quarter.
Steve Springsteel
Hi, Derrick. This is Steve. I mean, clearly we want to continue with our trend of increasing bookings. North America is coming alive and doing well for us and so we would like to push forward, continue to increase there as well as the other geographies.
Derrick Wood – Wedbush Morgan Securities
And then can you talk qualitatively a little bit about the pipeline of deals, the mix of size in deals and platform versus application and if you do have kind of – are there multimillion dollar deals out there still?
Steve Springsteel
It is multimillion dollar deals. Are there $10 million plus transactions? No, they’re kind of few and far between. If you look kind a bit our pipeline in the aggregate as we had said, North America is about 60% of the pipeline and that’s doing quite well.
If you look versus international – if you look at kind of the vertical split, financial services still holds the lion share of the overall pipeline. And then if you were to then kind of double-click into the product side of the equation, I think what you would find is that – actually it’s being split pretty evenly between platform and foundation.
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