Question-and-Answer Session
Operator
(Operator instructions) And our first question is from Nat Schindler.
Nat Schindler – Merrill Lynch
Yes, hi. Just a quick question on your consumer electronics business. In the past you said by the fourth quarter you expect that business to be roughly 10% contributor to revenue growing in the high double-digit. Is that still your expectation and how is the changes with the Symantec going to affect that side of the business and this growth of a percentage of your revenue?
Joel Ronning
Certainly as a percentage of our overall revenue that will now increase just given how the numbers are. But that business is, we’re feeling pretty good about it. We’ve signed a bunch of new contracts. The pipeline is larger and probably more importantly, we’re now starting to see those clients actually getting contracted. And so in terms of the 10% contribution we’re not breaking it out yet, but I've got to say it's feeling like a pretty robust market for us to go into. So, Nat, I can't give you details on this. Maybe we will give you some more visibility on the next call. But, it's growing very nicely and it’s pretty much on plan.
Nat Schindler – Merrill Lynch
Could you give us just any rough even qualitative comments about the difference in profitability between the consumer electronics business and your core software business?
Joel Ronning
The margins are very similar. We’ve talked about this before. They are almost identical. We don't handle any inventory; we don't have the responsibility for that. We’ve made modifications to the system in order to do a better job handling consumer electronics products. There are some things that we’ve had to do from a regulatory standpoint over in Europe, some new features of functionality we’ve added in, but overall it’s extremely similar to our normal business.
Nat Schindler – Merrill Lynch
And one final quick question and I'll jump back in the queue. But just going on a similar vein, gaming being your next big vertical that you've been going into. Lots of big announcements on this call. Could you even give qualitative comments about the relative size of gaming as a percentage of your revenue compared to CE and your core software business?
Joel Ronning
I think we’ve spoken to this before. The gaming business is one where we’ve got a pretty good book of business there. We’ve got a pretty good book of clients. I'm happy with that. I saw a similar kind of situation in early 2000 when we were signing on a lot of the primary software companies. Our first focus was to get the contracts and then build the clients and large clients. We’re going to have to be patient here. This is a group that is transforming their businesses into multiplayer online gaming, subscription models and in-game opportunities. And they are not all there.
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