甲骨文 (ORCL) 2003 Q3 法說會逐字稿

Good afternoon ladies and gentlemen and welcome to the SeeBeyond third quarter final results conference call.

At this time all participants are in a listen-only mode.

Later we will conduct a question-and-answer session.

Please note this conference is being recorded.

I would now like to turn the call over

to Andrea Williams, Senior Director of Investor Relations.

You may begin.

Thank you operator.

Good afternoon everyone.

Thank you for participating in SeeBeyond third quarter 2003 earnings conference call.

With us are Jim Demetriades, CEO of SeeBeyond, Carv Moore, President and COO, and Barry Plaga, CFO.

Following management's comments we will open up the call for any questions.

I would now like to read the Safe Harbor disclaimer and other securities laws statements.

The following conference call includes statements that are not historical in nature and as such cannot be are forward-looking statements for the purposes of Safe Harbor provided by the securities litigation reform act.

These statements including those related to estimated revenue, net loss, net loss per share, cost of sales, and total operating expense levels for the fourth quarter of 2003, the timing of future SeeBeyond profitability, anticipated cost of sales, and operating expense levels for the fourth quarter of 2003 and the first quarter of 2004, the expected level of future customer demand, the success of efforts to secure new customers, control cost, achieve profitability and sell new products, the future emphasis on enhancing customer relationships, the expense and increase in the sales force headcount by mid 2004, the expected recognition of revenue from SeeBeyond ICAN suite 5.0 during the forth quarter of 2003, an expectation for future growth of SeeBeyond business - are all statements based on SeeBeyond's current expectations, assumptions, estimates and projections its industry and its future prospects.

The company would like to remind you that these statements are predictions and that actual events and results may differ materially from those forward-looking statements based on certain risks including market acceptance of our products and services, risks relating to customer adoption of and sales efforts behind the company's new SeeBeyond ICAN suite 5.0, the discretionary decisions to release new versions of existing SeeBeyond products, release of competitive products and changes in the mix of products and services revenue among other factors.

The forward-looking statements contained in this earnings release and earnings conference call are also subject to other risks and uncertainties including those most fully described in the company's filings with the SEC These include its annual report filed on form 10-K for the year December 30, 2002 and its quarterly reports on form 10-Q.

The company does not undertake to update any forward-looking statements.

Please note that on this call we will provide you with several financial metrics determined on a non-GAAP or pro forma basis.

These items together with the corresponding GAAP numbers, and a reconciliation to GAAP where practicable are contained in today's press release which we have posted on our Website at www.seebeyond.com and also furnished to the SEC on form 8-K.

Please note as well that on this call we will discuss historical financial and other statistical information regarding our business and operations.

Some of this information is included in today's press release, which we have posted on our Website and furnished to the SEC on form 8-K, the remainder will be available on our website by accessing a replay of this call.

Now I'd like to turn the call over to Jim.

Thank you Andrea and welcome everyone to our third quarter 2003 earnings conference call.

Before turning the call over to Carv Moore, our President and Chief Operating Officer, I'd like to update you on three areas of particular interest.

First, SeeBeyond's third quarter performance.

Including the general business environment that we've seen for integration technology and steps SeeBeyond is taking to achieve leadership in the integration marketplace.

Second, news coming out of our second major customer conference, Horizons, which took place in Las Vegas last week.

And third, I'd like to elaborate a bit on SeeBeyond's GA release of the business integration platform, the integrated composite application network or ICAN 5.0.

So here are the highlights of SeeBeyond's third quarter financial results.

In the third quarter of 2003 SeeBeyond had total revenue of $32.4 million, exceeding the high end of guidance provided by the company, which was 30 million.

We also reported a GAAP EPS loss of 6 cents per share which also beat our guidance of a loss of 10 cents per share.

We ended the third quarter of 2003 with approximately $70 million in cash or 84 cents per share and DSOs of 80 days.

I would like now to address the current business environment for integration technology.

Despite I think a partial lifting of the gloomy mood that has covered the industry the current reality is that IT spending especially software budgets still remain tight and discretionary spending on new technology continues to be soft.

In that context I'm pleased with the results we achieved in Q3.

While it has been difficult to foresee when integration spending budgets will accelerate, SeeBeyond has adopted a proactive agenda by building over the last few months a new management team that will leverage SeeBeyond's long time technical leadership into business leadership, market leadership, and growth.

Three months ago when SeeBeyond reported second quarter earnings, I announced the appointment of Carv Moore as President and Chief Operating Officer.

As a former President of Novell Americas, Carv brings to SeeBeyond a new level of experience and a fresh set of skills that he and his team will use to develop and execute a successful sales and marketing program for our next generation business integration platform for the ICAN suite 5.0.

Some of the key hires in the last 3 month also included the following, Ross Altman, former of the Gardner Group and EDC, has joined the company as CTO, Thor Culverhouse with senior experience at IBM and Interwoven is now heading America sales and Mike Mansbach formerly of SeeCommerce is heading Global Marketing.

This is an all star team that I think is poised to show great results, clearly these winners eagerness to join SeeBeyond is a confirmation of our potential in the business integration marketplace.

All of them saw ICAN 5.0 which is why they decided to join SeeBeyond and help propel us to the next level.

Now I'd like to provide you with an update on the Horizons 2003 conference we had last week in Las Vegas.

As you know, SeeBeyond Horizons is our users group, and where we bring together industry thought leaders, partners and customers together under one roof with premier sponsors such as Siebel, Excentra (ph) and Deloitte.

If the record attendance is the indication, interest in SeeBeyond is at all times high.

The theme of Horizons was innovation in action.

We invited customers to present ways, in which SeeBeyond integration solutions have driven business value in their organizations.

The response from customers was so profuse that in planning Horizons we had to expand the customer presentation segment twice and we still didn't have room for the many positive stories customers wanted to share.

Among I think the most eagerly attended customer presentations were those by industry leaders Nike, Pfizer, Hiphol Veron Bank (ph) and Carostuck Craller (ph) , organizations which chose to participate in the ICAN suite 5.0 early adopter program.

Generally speaking presenting a customer's confirmed SeeBeyond vision that the future of business integration lies in solutions that leverage an organization's existing IT asset and extend the potential of those assets through composite applications to business end users.

Our feeling is that because of ICAN 5.0 suite includes end user interaction, it completes the evolution of business integration from plumbing for the very first time, however important, to a business value driver moving every closer to ever closer to the heart of business operations.

Remember now that in 30 different industries the world's largest companies have selected SeeBeyond as their enterprise standard.

This is because only SeeBeyond has had the vision where integration software will go over the last ten years.

Everyone else in our industry follows SeeBeyond.

Which brings me to my third point.

And perhaps the most important point, which is the announcement of the GA or general availability of the ICAN suite 5.0, which we announced at Horizons on October 15th.

We have been extremely encouraged by demonstrating in showcase the ICAN 5.0 during the last few months to analysts, partners, new and existing customers and the reception I must say has been overwhelmingly positive.

Among analysts, Gartner called 5.0 the Swiss Army knife for XX1 century enterprise.

One other groups, one of the New York analyst organizations called it powerful, excellent, a significant step forward in evolution of integration that delivers substantial savings.

Most analysts and customers agree that ICAN 5.0 represents true differentiation in the marketplace not through acquired technology or lack of vision, but rather, by developing a fully integrated product set.

This is truly differentiated and integrated platform, which I think today will solve business problems and the product suite has been built by the same team that has been delivering the best and most innovative integration architectures for over ten years.

Analysts that I've spoken with said that ICAN 5.0 is around two years ahead of the competition; and in fact we are hearing the same thing from many of the largest companies who have seen ICAN 5.0.

They have also said that ICAN 5.0 is four times more revolutionary more important to the industry than e*Gate 4.0.

Importantly we have been able to demonstrate the ICAN 5.0 integration platform to almost all of our new customers in the last few months.

I can safely say that all of our new deals this quarter are being influenced by the vision and road map ICAN 5.0 represents right now.

We look forward to great things from the ICAN 5.0 suite and expect to recognize revenue contribution from ICAN 5.0 in the current quarter.

ICAN 5.0 represents the complete transformation of SeeBeyond.

In addition to its game changing platform we have as I mentioned assembled the management team committed to marketplace victory and we've rebuilt our sales and marketing organizations to support both the new product suite the new vision and the new team.

Now let me turn the call over to Carv Moore, our President and COO for discussion of his accomplishments in Q3 and his plans going forward.

Thank you Jim.

I welcome this opportunity to address the investment community and share my enthusiasm for the future of SeeBeyond.

My ultimate goal is to make SeeBeyond as operationally proficient as it is technically excellent.

And the way to do that is to become 100% customer focused.

My career has taught me that operational excellence is a byproduct of customer focus and I promised our customers that Horizon at SeeBeyond is going to become the benchmark by which they judge all other vendors.

I spent most of Q3, my first three month on the job in the field talking to customers and what I found was a profound respect for SeeBeyond's technology and its people and a number of areas where we can do better.

That's why we assembled an operational team whose memberships will help SeeBeyond deliver on its promises.

In addition to the people Jim has already mentioned, we have also brought aboard Larry Scott, a proven market leader as Vice President of Global Financial Services and Tom O'Gorman as our Vice-President of Professional Services for Americas.

Turning to sales in the third quarter we experienced increased sales activity in the latter part of Q3, with larger deal sizes and a very healthy contribution from our existing customer base as well as increased participation from our partner channel particularly the systems integrator community.

On a sequential basis, license revenue increased approximately 4.1 million or nearly 50%.

During the quarter SeeBeyond completed 84 transactions including 31 transactions with new customers.

We also signed four seven-figure deals during the quarter with 59% of revenue coming from existing customers and 59% of revenue influenced by our partner channel.

So here is the details about the four-seven deals.

First, the Hertz corporation selected SeeBeyond as its global enterprise standard for integration.

The Hertz business was a competitive win against both Tipco and IBM, which required a highly scaleable, flexible, and reliable integration platform to win proof of concept conducted on site at Hertz.

Second, Fiat GM power train, which manufactures engines and transmission components for the entire set of Fiat production lines in 19 production plants in 11 countries.

We believe that our strong relationships with General Motors where SeeBeyond is the enterprise integration standard gave SeeBeyond an advantage and its competitive win against IBM, Tipco, and WebNet.

Third, BlueCross BlueShield of Massachusetts, the largest health plan in New England.

This project is especially satisfying, since it reaffirms BlueCross BlueShield's commitment to SeeBeyond, and also extends our work with this organization.

And finally, we signed a seven-figure deal with Carstadt, on of the largest German retail organizations and the second largest catalog retailer in Europe.

All of the major players competed for this, including IBM, Tipco, WebNet, and ASP.

Important in securing the win for SeeBeyond was the commitment of our team in the identifiable technology differentiation of the SeeBeyond platform in supporting and integrating a new SAP installation.

We were able to beat our competitors in these transaction because of our uniquely open and scalable architecture, the portability of SeeBeyond integration code to all operating systems and platforms, portability to the HP's not-stop platform and superior partnership commitments from our systems integrators.

While we're encouraged by these competitive wins in the third quarter, we remain cautious as market visibility remains low and the sales cycles remain extended.

During the quarter we took a hard look at how we conducted business.

For example, we determined we could do a better job of selling product and services to our Stall Base, which is over 1850 organic customers is the industry's largest.

With the GA of ICAN 5.0, I believe that we have a tremendous opportunity to enhance our existing customer relationships as reflected in some of the biggest deals of the quarter executed with existing customers.

In addition we have several key initiatives under way.

First and foremost, we are focused on hiring the right salespeople and increasing our numbers on the street.

Currently at 53 sales reps we expect to increase this number to 70 to 80 by mid 2004.

Second, we are also increasing the accountability of sales reps.

For example, we have created a customer targeting or tracking systems to increase the number of live customer presentations delivered each month.

We have created a highly transparent sales environment, whereby sales reps can gage their results both individually and as compared to the entire sales organization in real time.

Third, senior management is getting more involved in the sales process.

For customers it demonstrates SeeBeyond's dedication and interest in its customers business.

For SeeBeyond it is important that senior management have more visibility into our customers business challenges and we've already seen the positive results of these efforts.

And finally, we are working diligently to increase our visibility of our pipeline by revamping our forecasting discipline.

In other words, working to complete immediate sales, or maintaining close contact with our customers to stay on top of opportunities in future quarters.

And before I hand the call over to Barry, let me offer a few last thoughts.

With ICAN 5.0, SeeBeyond leapfrogged the competition.

Our customers see it, analysts see it and I believe our competition sees it.

We are working now to leverage true technology leadership in differentiation to go deeper into our customers' vertical industries and offer complete business solutions from a consultant sales process to professional services and customer support.

This approach will create a partnership with our customers to solve their business problems.

So now I'll turn the call over to Barry Plaga, our Chief Financial Officer for a detailed discussion of our Q3 results and for forward guidance.

All right, thanks Carv.

Today I will cover our operating results for the third quarter ended September 30th, 2003.

And then I will follow up with a discussion of forward guidance.

We reported total revenue for the third quarter ended September 30th of $32.4 million.

Total license revenue for Q3 was $11.2 million which represented 35% of our Q3 revenue mix.

International revenue represented 43% of total revenue for Q3, with Europe representing 34%, and Pac Asia 9%.

Sequentially from Q2 '03, North America revenues were up 7%, EMEA revenues were up 27%, and Asia Pacific was flat.

We've executed 84 deals in the third quarter, some of the companies that purchased SeeBeyond software were BlueCross BlueShield of Massachusetts, BDP International, DC government, Fiat, GMAC Finance, Great West Life, Hertz Corporation, Carstadt, LA County Department of Health Services, Nikon, NSMTF, which is a French rail company, the largest rail company in the world.

The top four license revenue verticals for Q3 were financial services and insurance, health care, retail, and manufacturing.

SeeBeyond had no customers during Q3 which represented 10% or more of total revenues.

During Q3 our strategic partners consulting and software influenced approximately 59% of our license revenue.

EDS Bearing Point and CSC were our top strategic partners in third quarter based on license revenue influence.

Repeat license revenue in Q3 which is license revenue from preexisting customers was also 59%.

Service revenue for the third quarter was 9.4 million down 4% sequentially from 9.8 million in the June quarter.

Maintenance revenue for the third quarter was 11.7 million down from 11.9 million in Q2.

Overall gross profit for Q3 was 68%, up from 62.4% in the June quarter due to the change in the revenue mix.

Service and maintenance margin was 56.4%, up from 51.3% in June, as we continued to focus on cost controls and improving margins in all areas of our business.

Total operating expenses excluding non-cash charges for amortization of stock compensation and warrants and restructuring charges were 26.4 million in the third quarter down from 29 million in the second quarter of 2003.

Research and development expense decreased in Q3 to 10.1 million from 10.4 million in Q2, sales and marketing expense decreased to 12.4 million in Q3 from 14 million in Q2.

The decrease was attributable to decrease in discretionary marketing costs and overhead.

General and administrative expense decreased 3.8 million -- decreased to 3.8 million in Q3 from 4.6 million in Q2, and as you can see, we've been focused diligently on cost controls in all areas of our business, and will continue to do so as we roll out our new product suite.

On a GAAP basis net loss for the quarter ended September 30 was 4.8 million or 6 cent loss per share versus a loss of 8.2 million or 10 cent loss per share in the prior year's period.

Pro forma net loss for Q3 was also 4.8 million or 6 cent loss per share versus a loss of 8 million or 10 cent loss per share in the prior year's period.

Pro forma results for the third quarter exclude non-cash charges related to amortization of stock and warrants of $89,000.

For Q3 diluted share count was 83.1 million shares versus 82.8 million at the end of the second quarter.

Turning to the balance sheet total cash and cash equivalents was approximately 70 million as of September 30th.

Total cash decreased by approximately 10.4 million.

This decrease in cash is primarily the result of the loss from operations during the quarter, along with the increase in receivables related to the increase in revenues during the quarter.

Total net receivables were 28.1 million as of September 30th, our DSO at the end of Q3 was 80 days which is in line with our historical average.

Deferred revenue increased 2.1 million during Q3 to 29.2 million.

Cash used in operating activities in the third quarter was approximately 9.5 million of which approximately 7.4 million relates to the increase in accounts receivable.

Capital expenditures during Q3 totaled $500,000.

Also during Q3 the company repurchased under its stock buy-back program approximately 522,000 shares of its stock for a total of $1.2 million.

We ended the quarter with 691 employees including 53 quota carrying sales reps.

This compares to 708 total employees and 50 quota carrying sales reps at the end of the second quarter of 2003.

Now I'd like to discuss guidance.

I'd like to remind you that this guidance is forward-looking information and is subject to risks and uncertainties including those identified in our SEC filings and those mentioned earlier during this call.

Due to the continued difficult selling environment, the newness of our product suite ICAN 5.0, as well as the realignment of our sales marketing and alliances groups at SeeBeyond, we are cautiously optimistic regarding our prospects for the forth quarter.

We expect total revenue for the fourth quarter 2003 to be in the range of $32 to $34 million.

We expect a GAAP and pro forma net loss in the fourth quarter of 7 cents to 5 cents loss per share.

While cost of sales for Q4 should remain flat from Q3, total operating expenses are expected to increase approximately 1.1 million to 27.5 million, due to an expected increase in sales commissions, and an increase in marketing expenses related to our Horizons users conference which was held in October.

We anticipate expense levels in the following quarter which is Q1, 2004, to be flat to slightly down from the levels in Q4 '03.

We are focusing our efforts 100% on driving profitability in the near term.

We expect to decrease our loss in Q1 '04 even further from the level in Q4 '03.

We still expect to be break-even or profitable in Q2 and to be profitable for the remainder of 2004.

With that summary of guidance now I'd like to open the call up to any questions.

Thank you sir.

We will now begin the question-and-answer session. [operator instructions] Our first question comes from David Radu from Piper Jaffray.

Please go ahead.

Hey guys, good afternoon, great job on the quarter.

Thanks Dave.

In terms of the revenue from the quarter how much of the revenue was held over from Q2?

Let's see, I think there was, you know, in Europe, they had definitely some, you know, opportunities there that flowed over from Q2.

I'd say it was, you know, $1 to $2 million worth of opportunities.

And then for North America it was literally none, as you could tell by the growth there from quarter to quarter.

Uh-huh.

And then in terms of the big deals, what big deals have you closed in Q1 and Q2?

Were there any big deals in those quarters?

Let's see, there was three seven-figure deals in Q1.

And we had zero in Q2.

Okay.

And then if you -- looking out to '04, you gave us a little bit of range on the earnings per share.

Could you provide us with some visibility on the revenue growth for next year, how do you what are you looking at to get to the break-even by Q2?

I think in terms of -- just in terms of round numbers we're looking at you know a break-even quarterly level that's in the $37 to $38 million range.

So we feel you know that we can stuff it up here, you know, a little at a time, we're going to be conservative over the next two quarters and as the pipeline builds you know, close these deals that add 1 1/2 to 3 million a quarter and we're right there in the ballpark in terms of break-even.

Okay.

And then what -- if you look on the 5.0 release, two quarters out, what percent of your install base, do you feel could be up and running on 5.0?

Good question.

This is Jim Demetriades.I think if we look back now probably out over five major releases and probably safely say that it will be in the hundreds of customers that will be up and running on 5.0.

But 2,000 customers - it's really up to them.

The good news is, they don't need to do anything to upgrade. 5.0 runs with our 4.X environment, even our 3.X environment.

All of our existing customers, all they need to do is install the software and all their existing integrations, environments, connections, et cetera work in 5.0.

So it's really just a question of people ordering CDs.

I know that we've already shipped out numerous copies of 5.0 to our customer base already.

Thanks a lot.

And again, good job on the quarter.

Thank you.

Our next question comes from Greg Kleiner from SoundView.

Go ahead.

Thanks.

Can you touch briefly on why maintenance revenue declined sequentially?

If you look back at Q2, it really spiked up so probably more than natural progression from Q1, couple of customers then, you know, Q2 in Europe where, you know, suddenly laid in a little extra maintenance revenue that was caught up on their contracts.

So we were deferring it and carving it out until certain things were met and then we recognized it.

So this is where we're growing from Q3.

Q3 and Q4 should be back above where we were in Q2.

It is more of a one-time event in Q2.

I'll ask you more offline on that.

On the cash side, where do you think cash bottom is at this point?

We had about $4.8 million loss in Q3.

You know, we're trying to, you know, take it down by a third to a half here each quarter over the next two quarters.

Uh-huh.

Okay.

I think another thing Greg to look for is, you know, the ability to really sell 5.0 and deliver it.

And we now have exactly one week of history of shipping the product.

I could tell you as I said in my talk earlier that the interest is very, very substantial and we're very, very excited.

Truly, it is about 400% more product than even our -- what we shipped four years ago was with the e*Gate 4.0 architecture.

We are now playing in nine different product categories where traditionally we have only played in about three.

It is a unique product and truly differentiated.

And businesses are recognizing that; and I can tell you that there are a lot of the world's biggest companies that are very actively reviewing the implications to the entire company of a technology like ICAN 5.0 and we are seeing quite a bit of success in the field.

One other if I could.

Could you talk about the sales activity you saw both at Horizons and since then after a large number of your customers got to see the product for the first time?

Carv, you want to talk about that?

We were round the clock in a lot of executive level meetings with several customers that were there evaluating the product, plus the direct participation of customers.

We were as Jim mentioned, we were booked over capacity in some of our key seminars there, and it was a very, very interactive group of people and a lot of enthusiasm that we encountered.

Jim I think you saw the same environment.

Many of our major customers were at the conference, of course, hundreds of people were there.

And the reaction to 5.0 is, they want to displace half a dozen different products in their companies, and replace it with the SeeBeyond suite.

So there's immediate, tremendous cost savings by sunsetting, for example, various technologies that they might have bought as point solutions by -- and replacing that with a J2EE certified platform from one vendor that covers nine product categories.

Let me ask that question another way.

Were you able to use the event to close any deals, or is this kind of the opening of a number of sales cycles, a large number of sales cycles?

I would say we had about 20 prospected deals here that are near term being, you know, most in this quarter coming up that are-- big part of the coming to the events was to start solidifying it and help to push it along here to close as soon as possible.

And another activity is that we had a lot of existing customers in a couple of industries meeting with customers who were considering SeeBeyond and some very positive interactions that were resulting opportunities pursuing in Q4 as a result of those reference discussions.

I thing, the answer is both.

We had a lot of new accounts-- specifically including quite a few of 10, 20, 30, 40, 50 billion plus companies in our sweet spot and quite a few existing deck a billion dollar companies come to actually [indiscernible] SeeBeyond.

Thanks, next question.

Thank you.

Our next question comes from Carter Dunlap (ph) from Dunlap Equity Management.

Go ahead.

Horizons feedback-- As you sort of collate what you've heard, if you look at the installed base, and I realize there is the spectrum of sophisticated to less than so, is there a motive however easy it is, to roll up the 5.0 for the more power of the integration engine or because of the real estate you have included in the 300% or whatever functionality?

What do the clients tell you there?

I think they're telling us many different things, depending on the audience.

For example, for really the first time I think in integration's history, we're seeing lots of meetings with CIOs.

You know, traditionally sometimes we met with CIOs but it wasn't kind of a regular event.

Now we're clearly on the CIO's radar because what we've done is we've combined so many different products together into a single and the world's first J2EE certified platform that is interoperable across numerous application servers.

What that has done is excited a lot of interest at CTO level and CIO level.

Traditionally we would sell it to integration project, let's make SAP work with PeopleSoft or Oracle work with SAP.

Now we are doing much more than that.

We empowering IT shop to deliver on what users want.

Let's take our existing technology platforms and make them work together in a reasonable, open and portable fashion around business processes et cetera.

So it's probably about 10 or 12 major sales points that we bring up to these accounts that frankly nobody else in the world can address.

So I think it's really starting to leverage us up to the next level.

Carv, did you have anything else --

Could I interject?

Certainly, absolutely.

To the extent that most installed base are there because they're an integration customer, do you think their immediate motive to roll up however easy the migration may be, is because 5.0 is better at the same integration role they are using, or did you hear from your installed base they are really ready to take in these other parts of the footprint?

I would say it is all the expanded --

All the above.

The number one is the expanded footprint.

I think they loved the fact that for example they can do -- use an interface over and over and over again and all the business logic that they've created can now be used in other applications to do integration work.

So I think they're very excited about -- about not just the ease of use of the existing product but all the new products.

That's the number one thing I've heard from the early adopters is that they were excited to go back and go to their CIO and say we can now do all of our integration under one company's logo instead of four.

Okay, thank you.

Thank you. [operator instructions]Looks like we have no questions at this time.

Great.

In conclusion, I'd like to again thank everybody for participating in today's call.

Thanks for joining us and we look forward to talking with all of you again next quarter.

Andrea, I'd like to turn the call over to you.

Thank you for participating.

I'd like to remind everyone that this call will be available for replay from tonight at 8 eastern, 5 pacific until October 30th at midnight eastern, 9 pacific, dial back number is 877-213-9653 domestically and internationally 630-652-3041.

The access code for the replay is 7789043.

In addition following the conclusion of this call a rebroadcast will be available at the SeeBeyond Website, www.seebeyond.com.

Thank you, until the next quarter.

This concludes the conference for today.

You may disconnect at this time.

Thank you for participating.