Adam Holt – Morgan Stanley
I think I have a quick follow up. You also have another initiative to get folks to move from free to pay on a number of different levels. Can you update on your progress there as well?
Charlie Peters
Sure. This quarter we did not have any deals in the top 30 deals that were free to pay. We did have a number of smaller deals that moved from free to pay and that effort continues as well. I’m also happy to report that although it happened in the month of June so therefore not in, there was a sizable free to pay that we have managed to land this month which I’ll expand more about when we come to the Q2 call.
Adam Holt – Morgan Stanley
Right, thank you.
Operator
Your next question comes from the line of Sarah Friar of Goldman Sachs. Your line is now open.
Sarah Friar – Goldman Sachs
Great thanks very much. Charlie, could you talk a little bit about the differences you saw between large enterprise spending versus the more SMB type spending? Was there any shifting around in the quarter and I guess what I’m asking is SMB’s I feel have been more heavily hurt by this downturn, so are you starting to see them recover at all?
Charlie Peters
At this point I would say we have not seen any recovery and we’re not trying to call the timing of the recovery, the timing on the basis that the economic environment is going to stay fairly similar to what it is for the balance of the year. I would say this, like others that have recently reported we see a longer sales cycle and in some cases additional levels of approval in sale cycle. But that’s kind of the way it’s been for the last couple quarters. Our expectation is that’s going to continue for at least a few more quarters.
Sarah Friar – Goldman Sachs
Got it and I’ve got two quick follow ups. The financials vertical, I’m kind of not asking the same question but I’m not asking you to say it’s recovering, but clearly that was a vertical very hurt where you have a lot of, it’s a big vertical for you. So do you see at least financials beginning to sound a little bit more optimistic and then just on the numbers, the difference between the change in deferred revenue on the cash flow statement versus what we can see on the balance sheet, is that all just a currency difference?
Charlie Peters
Let me see if I answer this question and then we’ll go to the next question.
Sarah Friar – Goldman Sachs
Sure.
Charlie Peters
On the financial vertical, even when it was most dire, probably three months, six months ago, our renewals of important financial customers continued pretty much nonstop. And we’ve done very well. We’ve recently, also in the month of June, picked up another very important financial customer, a new financial customer. So it has been good for us. I’m hopeful that the business of the financials will pick up so they will have even greater demand. The last part of the question on the deferred revenue, let me just add a little bit. The question is, the change in the deferred revenue, if you look it up the balance sheet, it is about $24 million. The change in deferred revenue if you look at the cash flow statement it’s about $3, and part of it is currency, part of it is US dollar. I would break it down this way. In the short-term section there’s a positive change of $6 million and additional $14 million change from currency for roughly a $20 million change in short-term. And long-term consistent with what I said about the changing of the average life of the contract from 24 months historically last two quarters to 19 months this quarter. We have a US dollar reduction in long-term deferred of about $3 million, which is more than offset with a currency improvement of $7 million for a net change in long-term of $4 million. Hope that provides everyone with better clarification.
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