Blue Coat Systems Inc. F1Q10 (Qtr End 07/31/09) Earnings Call Transcript

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2009-08-25 19:42:20.0

Tags: Marketing, Call Transcript, Earnings, Blue Coat Systems Inc., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from Jonathan Ruykhaver - Thinkequity LLC.

Jonathan Ruykhaver - Thinkequity LLC

I don’t know if I missed this or not, but I did hear the sales generated from Packateer product of $15 million. Did you comment on the amount of services revenue from Packateer?

Brian M. NeSmith

We did not but we can give it out to you if you’d like.

Tyler Purvis

Yes, John, Packateer service revenue is about $10.7 million in the quarter.

Jonathan Ruykhaver - Thinkequity LLC

And I know, Brian that you’re going to get away from mentioning specific metric amount around the number of sales teams that you end the quarter with. I think it was 147 last quarter. But I’m just curious, given the lower dollar amount spent on sales and marketing sequentially was there any kind of headcount reduction on the sales side in the quarter?

Brian M. NeSmith

No, I believe it slightly increased. I’m trying to see if we know the exact number, but I think we ended with what would have been the equivalent of about 152 sales teams even though we’re not reporting so. So we actually are slightly up even from the previous quarter.

Jonathan Ruykhaver - Thinkequity LLC

Can you give us some color what drove the better efficiencies? Is that lower amount of spend on sales and marketing was just some cuts to discretionary spending on certain marketing items?

Tyler Purvis

Some of it. The part that you have to be careful from Q4 to Q1, Q4 was the end of our fiscal year and a lot of our sales teams are in accelerators. And so Q1 there’s, not many are in their kind of annual accelerators because we have an annual compensation plan. The other part, too, is a lot more attention to what I would call the non-quota carrying capacity. So focusing on SEs, focusing on people that aren’t directly carrying quota, whether we need the same structure. We actually for a fairly significant portion of our sales force, we broke down the barrier which we historically operated to where every dedicated salesperson had a dedicated SE and now a good majority of the sales force, the SE pool is actually shared among the sales organization. So I think over time we’re going to just drive better efficiency with the use of both SEs and channel account managers and inside sales, because we’re optimizing each along the kind of the unique dimension that we need to.

 

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