Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Heinz - Needham & Co.
David Heinz - Needham & Co.
Yuchun, what percent of the new on-premise deals that you signed in the quarter are being paid for on a subscription basis?
Yuchun Lee
There are a few. The majority of the transactions that are perpetual, quite a bit of those are still going on. As I mentioned in similar to previous quarter, there are a few deals that the customer purchases of that subscription would have been a perpetual more normal time.
David Heinz - Needham & Co.
So is that less than a quarter or is that roughly half?
Yuchun Lee
None of the subscription part are recognized and usually it’s associated with somewhat larger transaction frankly?
David Heinz - Needham & Co.
So those larger ones that are the on-premise deals that are being paid for on a subscription basis, where are those revenues being recognized, in the subscription line item?
Yuchun Lee
Yes. Although, don’t forget that to start recognizing those, we’ll have to hit the milestones needed to do so. So for example, last quarter none of those are recognized.
David Heinz - Needham & Co.
Now would include that maintenance would also be in that line item on those deals?
Yuchun Lee
Maintenance will be associated with perpetual licenses.
David Heinz - Needham & Co.
It’s bundled with the subscription payments?
Yuchun Lee
That’s right, exactly.
David Heinz - Needham & Co.
So now that you’re getting some subscription based revenue from on-premise
deals in your subscription line item. Is there a way that we can get to organic growth number for the on-demand side of the business?
Yuchun Lee
One of the things that we are assessing is to make sure that we put a lot more visibilities for investors on our recurring portion of our business and we are in the middle of planning for 2010 and a lot of those thinking are getting into the planning process. So I would expect that it come November, that we will revisit how we shared those, but giving you more visibility to those will be important, because that’s becoming a larger and larger part of our business.
David Heinz - Needham & Co.
Then I guess on that visibility question, so we have nearly two-thirds of revenues are recurring and then I guess stabilization of perpetual license side of the business and you gave a lot of helpful color, but how close to view the point, you guys are be able to give guidance again?
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