Next question please, operator.
Operator
Your next question comes from the line of Brent Thill of Citi. Your line is now open.
Brent Thill – Citigroup
You got out of the gate pretty strong on the margins. You already have your target for the year. It looks like you’re going to dial back a little bit on the margin in Q2. Can you give us a sense are there additional expenses that are coming back in that are going to tone the margin expansion down from what we saw in Q1? How are you thinking about that metric?
Charlie Peters
I think you’re simply interpreting my guidance of the use of around 23%. I didn’t mean necessarily at 23%, I mean around 23% so, but having said that, Jim did talk about continuing investments in various growth areas. I would expect that the mix of the services business would be a little bit greater in Q2 then it was in Q1. But overall I think the performance all the way down the line down to the operating margin line, still looks like it’s going to be on track with the numbers I talked about at the start of the year.
Tom McCallum
Next question please.
Operator
Your next question comes from the line of Mark Murphy of Piper Jaffray. Your line is now open.
Brian Schwartz for Mark Murphy – Piper Jaffray
Yeah hi this is Brian Schwarz for Mark Murphy. Thank you for taking my question. Jim and Charlie, you’re making it clear here on the call that you’re not calling stabilization in the economy yet, but with the conversations you’re having with CIOs are you getting any sense that their budgets are loosening up for the second half of this calendar year or possibly looking at it from a metric standpoint, can you compare the growth in your pipeline or the number of RFPs received this past quarter to the previous quarter. Thanks.
Jim Whitehurst
In talking to both CIOs as well as other large partners of ours, frankly we’re not seeing any, we’re not seeing a lot of signs that budgets are getting looser. Budgets are still tight. I think companies across the board are all waiting to see the bottom and so I would say budgets continue to be tight. But to emphasize again, that in relative terms is pretty good for us. Our value proposition is strong in a tough economy so, I don’t want to say that in a negative way but certainly we see budgets continuing to be tight out there and without a clear end in sight right now.
Charlie Peters
I would just add I think there’s also a positive here in that at least budgets are known. For the most part they’re known. Whereas three, four months ago, many budgets were still being debated and therefore unknown and therefore it was, particularly in the government for example, it was much more difficult to even have the conversation about the budget that was available.
Tom McCallum
Next question please.
Operator
|
