Question-and-Answer Session
Operator
Thank you. The question and answer session will be conducted electronically. (Operator’s Instructions) Our first question will come from Robert Rezza with RBC Capital Market.
Robert Rezza - RBC Capital Market
Matt, I was wondering if you can talk a little bit about the success of the TZ line. Do you think it was some pent-up demand for the TZ, just a better product launch for you? I guess I’m kind of wondering just kind of as you look at the sustainability of the product introduction, going forward here, obviously it’s met with some pretty good success so far.
Matthew T. Medeiros T. Medeiros
Yeah, Rob, I think the most important factors are technology. We invested heavily in the new technology. We’re demonstrating substantial improvements not only against our previous product family, TZ product family, but against the competition. And when you can demonstrate a 10X improvement over the competition in UTM I think it’s really simple for customers to make the decision they way that they did. But, no, we’re very happy with the transition that we’ve made from our previous line of TZ products to our new product.
Robert Rezza - RBC Capital Market
Maybe Rob, I mean, operating margins are doing quite well. And hopefully as we come out of this recovery and the SMB and you guys get more confidence there, I mean, how should we think about margins going forward? Should be kind of a stabilizing then growth or you think you’re going to have to make investments? Obviously getting the TZ launched here makes the investments side maybe a little bit less and you guys just making consistently managing costs. But any thoughts about the margin profile, I guess, maybe as we come out of this recession?
Robert D. Selvi
Yeah. I think we’re not going to deviate, Rob from our overall long term guidance at the moment with sustained mid teen operating performance. I think the way you characterized the go forward is correct. As we benefit from an opportunity to grow the business both in terms of unit volume as well as revenue, there are investments that’ll need to be made along the way. Overall we do think we have a leverageable platform, I would say. But it’s not a platform that doesn’t require investments. So we’re going to stick with mid teen operating performance for you.
Robert Rezza - RBC Capital Market
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