Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Robert Evans - Craig-Hallum Capital.
Robert Evans - Craig-Hallum Capital
I want to clarify some of the detail at the beginning. The PLE orders, I think you said you now have 1,350, is that correct?
Vincent P. Riera
That's right.
Robert Evans - Craig-Hallum Capital
And that's up what, year-over-year?
Robert J. Rueckl
Compared to this time last year, this time last year we had about 1,100.
Robert Evans - Craig-Hallum Capital
And the new customers of the new school districts, you said 106 of them are new?
Robert J. Rueckl
106 of them were transition, or the legacy. 70 were new.
Robert Evans - Craig-Hallum Capital
And for your orders that are new this quarter, what is the average term of those orders? I think you gave a weighted average for all orders. I'm just curious what it was for this quarter. For the new subscriptions.
Robert J. Rueckl
It's going to be very comparable to the total. Our total new business, which I call the first-time customers and then expansions from existing customers, right around 20 months, versus 18.5 overall.
Robert Evans - Craig-Hallum Capital
Also a question on the operating expenses. Your R&D bumped up a little bit sequentially. Is that going to be a volatile number or is that a number that we should use kind of as a run rate going forward? I should say the product development side, is that something that you can explain, are you doing more work there or give us a sense of what's going on in product development and what we should for a run rate going forward.
Robert J. Rueckl
We had about $250,000 to $300,000 in the charge related to the departure of our former CTO included in that line so that's a one-time piece of that number.
Robert Evans - Craig-Hallum Capital
So next quarter it should bump back down.
Robert J. Rueckl
It should, yes.
Robert Evans - Craig-Hallum Capital
And from a margin standpoint, continued strong margin growth on the subscription side. As you continue to scale there, where can subscription margins go?
Robert J. Rueckl
We still think subscription margins, longer term, upper 60s to low 70s. So we should see those start to—they will remain in the lower 60s for the balance of the year. And we should be able to continue to grow those as subscription revenue grows, because it's very leveraged. As you know, with the subscription revenue growth, out pace in the increase in the amortization, the biggest piece of the subscription cost of revenue is the amortization of the product costs. As we've lowered that investment over the last couple of years, the amortization in coming down.
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