Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Scott Penner with TD Newcrest..
Scott Penner - TD Newcrest
First, a couple of clarifications; Paul, in your comments you said [to read] into that then that Vignette is expected to be slightly dilutive in the first quarter?
Paul McFeeters
That's correct, Scott
Scott Penner - TD Newcrest
And the tax rate as well, we should be modeling 28% to 26% in the upcoming year. Is that right?
Paul McFeeters
Correct.
Scott Penner - TD Newcrest
John, just on the geographical split of revenue, Europe [seems to have] been weak for a lot of vendors out there, and you are saying it was basically in line. Is the split of revenue a function of where your WCM business is based?
John Shackleton
It is. We do see a lot of WCM business in the U.S., but interestingly, we saw Germany, that had been weak a previous quarter, come back fairly well this past quarter. So Europe did better than we expected.
Scott Penner - TD Newcrest
You mentioned particularly happy with the SAP relationship. Maybe you could just go into a little bit more details to the extent you have deal specifics from SAP, and then I guess how you capitalize on the strength that you're seeing.
John Shackleton
I think Scott obviously SAP had a tough last quarter, but what we found was is that working with their sales people, both North America and Europe, we were able to go back into their existing base and sell the archiving products and the Vendor Invoice Management products to that customer base. So even though they were having a tough time, we had quite a bit of success selling our products.
Scott Penner - TD Newcrest
Lastly, and this may not be something you can really even comment on, but in last quarter Vignette they had announced, the guidance at that point from the management there was basically flat, possibly flat revenue for the year. And you are now cautioning us to be modeling down 30% to 40%. Is there anything to describe that sort of discrepancy?
John Shackleton
Basically, if you saw the decline that they had was significant for probably eight quarters, before we took them over. A lot of what we've seen as we've talked to customers was customers that had been moving from their version 5 to version 7 products were having a tough time.
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