Jay Vleeschhouwer - Merrill Lynch

Okay. On the other hand, the number of new customers taking on maintenance has continued to slow year-round. The number of new signings is less than half the previous several quarter average, so that would seem to be some indication of obviously weakness in the new license business but do you think that number of new signings, new subscribers is going to continue to tail off significantly from here?

Carl Bass

I don’t know if it tails offs significantly from here -- a little bit hard to say, but definitely a decline in the rates, whether it stays at that level or not I can’t really provide much guidance on that.

Jay Vleeschhouwer - Merrill Lynch

Okay. Just a couple of last things -- in terms of your visibility, one thing we noted in a CAD and TLM user survey a couple of months back that we did is that your customer base in particular has fairly short procurement cycles, shorter than the group on average. Most of your customers, according to the survey, seem to be within that three month procurement cycle, maybe three to six at most. So, is that something that you actually see yourselves and can manage to, given that your customers do tend to have fairly quick turnaround time normally in terms of buying?

Carl Bass

Yeah, I mean, there’s no doubt that our customers have shorter buying cycles. I mean, particularly when you throw in PLM and people are buying $20 million, three or five-year implementations with -- you know my opinion on the subject -- with no visible return on investment. It doesn’t surprise me much that it takes a lot of time to make that decision. You know, in my opinion, the time should be almost infinite.

But people going out and buying design and engineering software do actually -- it’s one of the requirements for an engineer or an architect doing their job, so a lot is tied to just the number of people employed doing those jobs, and most of our customers as they hire new engineers and architects and they come on staff, they are handed new copies of software. They are the -- you know, the converse is obviously true as well.

Jay Vleeschhouwer - Merrill Lynch

All right, and then finally how will the environment or your new cost reduction plans have an affect, if any at all, in terms of your direct or indirect sales capacity expansion plans?

Carl Bass

We would like to maintain -- I think one of the most important things in this downturn is that we continue to work on our channel capacity. The real shame of this would be coming out of a downturn with any reduction in channel capacity. As you saw, I mean, there’s still some parts of the world that where business is phenomenally good, our emerging markets are continuing to grow, we’ve talked about the fact that we don’t believe we have adequate coverage there; more coverage will lead to greater sales, so we are really re-jiggering where we are doing that expansion and capacity and capability to meet today’s economy. But I would like to see us continue to expand that within reason, much more tempered certainly given the environment.

Jay Vleeschhouwer - Merrill Lynch

Okay. Thanks Carl.

Carl Bass

Thanks Jay.

Operator

Just to remind everyone, if you would like to ask a question, please press “*1” and please remember one question per caller. Your next question comes from the line of Richard Davis with Needham. Please proceed.

Richard Davis - Needham & Company, LLC