Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Steve Ashley with Robert Baird. Please proceed.
Steve Ashley - Robert W. Baird
My question is about maintenance revenue. I see that deferred maintenance revenue declined a little bit sequentially for the second quarter and I wonder what the prospects are for maintenance revenue. Maybe you can talk about that on a sequential basis. Is it possible we could see that cascade down a little bit in the future quarters? Thanks.
Mark J. Hawkins
As far as the maintenance revenue, Steve, this is Mark -- yeah, that is possible. I think you could potentially see that. I think the driving factor with the maintenance revenue has to do with the number of people in seats, basically. People see a lot of value in our maintenance offering -- it’s just that you have to be in a seat to see that value, so I think that is possible.
Steve Ashley - Robert W. Baird
Great. And if we look at R&D, it’s 24% of revenue. You’ve talked about the business being reset. Is that a level -- expense level that you are comfortable with going forward?
Mark J. Hawkins
I think from a -- let’s look at this way, Steve -- obviously there was a reset in the marketplace in general from a revenue standpoint. When we look at our R&D, we have a good level of investment today. We are planning for the future and as far as the ratio, we’ll be thinking about it in terms of our long-term model over time.
Carl Bass
I think if you looked at every one of our ratios, I don’t think any of them are acceptable -- I mean, unless we were to believe that long-term operating margins should be in the teens, every one of the ratios is off. So I think R&D is off, I think G&A is off, sales and marketing are way off.
Mark J. Hawkins
So we’ll be driving to a long-term model over time and Carl’s called that out before to get to a higher level of operating margin and the key thing is over time.
Steve Ashley - Robert W. Baird
Thanks.
Operator
Your next question comes from the line of Keith White with Morgan Stanley.
Keith White - Morgan Stanley
Thank you for taking my question. I was wondering if you could help us perhaps try to quantify those costs that are suppression costs versus what is actually a reduction in the cost base?
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