Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Raj Seth – Cowen & Company.
Raj Seth – Cowen & Company
Aart can you talk - don’t talk explicitly about bookings, but how, even qualitatively, how have bookings come in here in Q3? I think last quarter you suggested that Q1 was weak, Q2 I thought was closer to your expectation. How’s the bookings environment feel how bookings have been coming in, even qualitatively if you can make any comment?
Aart J. de Geus
We don’t give any quantitative comments but qualitatively I would say it is sort of back to expectations. The Q1 was extraordinary just because almost every company was in shell shock and just delayed all decisions. I think we’re now back to business as usual with one difference from the past which I eluded to which is that all the contracts tend to go a little bit longer towards the end of the contract which is actually very reasonable behavior given the situation and given that the contract that we are closing are coming in just fine. I think this is exactly the type of situation for which we are well equipped.
Raj Seth – Cowen & Company
So run rate I think last quarter you talked about it being - annualized run rate sort of at par or slightly below, same general trend.
?
Aart J. de Geus
Yes that has not changed partially because we’re really reflecting what’s happened early into the year. I remain a little bit cautious about will there be further consolidation or changes in the semiconductor industry but at the same time I also see a number of signs that people are definitely seeing some light at the end of the tunnel or at least preparing for that.
Raj Seth – Cowen & Company
You mentioned some incremental caution on some of the turns business that you would normally see in Q4. What’s driving that or is that a minor effect?
Aart J. de Geus
I think it’s a minor effect. It’s more that, in a situation where people live with uncertainty are cautious, turns business can be easily delayed by a day, a week, or a month and if those happen to be the dates that cross the boundary of a quarter one tends to be a little bit more sensitive to that. However, the quality of our business model is such that we enter with the quarter with a high degree of confidence in our revenue and so it’s really just on the margin I would think.
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