Transcript Module - Q&A 8 NETP 2Q CC
Questioner: U.S. Bancorp Piper Jaffray (Mike Mazzell)
Hi! I was just wondering if there is any change as you continue to move upstream, if there's any change in the average customer buying pattern - whether they're still buying individual modules or moving towards the entire suite.
Tom Donnelly, CFO: We're seeing more and more customers buying more offerings, particularly now with the ASP business. We now have 7 software products and 4 service - ASP services offerings. And we're seeing more and more companies like, for instance, Willams-Sonoma, that want software and the services on the ASP in the first quarter. So I think, it is our strategy, and we are seeing companies move along the lines that where they will buy more than one product offering and, as we've said in the past, you know, some of those products offerings are going to start to come together into a broader platform to really serve the needs of the merchandiser and the marketer in the multi-channel retail setting.
And then you mentioned the average size transaction size - bullet point - that you excluded OEMs. Is that just from the prior quarter?
Tom Donnelly, CFO: Yeah, it is. I think its important to note that our ASP (average selling price)is continuing to rise as our indirect revenues are rising, so, in a re-sold situation, and you're not getting quite so much professional services, generally, along with the sales, so I am encouraged with where the ASP's (average selling prices) are going.
Righty. And could you give us some sense of the percentage business that fell out of the pipeline that was dot.com related? What would your dot.com percentage have been if you didn't lose any?
Tom Donnelly, CFO: Yeah, I don't know that I have an exact number. I think every quarter you have a pipeline and things come in and close and things shift out into future quarters. I....the tone I was trying to express was that dot.coms are more and more concerned about where they're spending their money and I think long-term that's going to bode well for us because our value proposition is to help them make money.
And just finally. Some think there might be a change in the dynamics between IBM and Vignette. Does that change the dynamics between either IBM and NETP or Vignette and NETP?
Tom Donnelly, CFO: Im going to have to apologise. We're not ... what are the changes in the dynamics?
Possibily shifting to BEA
Tom Donnelly, CFO: In other words Vignette shifting to BEA?
Possibly
Tom Donnelly, CFO: Possibly?
Stephen Snyder, CEO: I think that's several orders of effect removed from where we compete. We don't see that impacting us. Of course, we work with BEA. We work with Websteer(?). We work with all of the application server platforms.
Great, thanks again.
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Note:
Having a transcript of the CC in our archives would be useful. From time to time, I will transcribe a module until the whole CC is available in one document. If anybody would like to check my transcript against the audio on http:///www.netperceptions.com (go to "Investors - Audio Archives") I would welcome corrections. Also, if anybody would like to contribute a module, please do |
