Automatic Data Processing Earnings Call Nuggets: ES New Business Bookings and Growth Outlook
ES New Business Bookings
David Togut – Evercore Partners: Carlos, could you quantify ES new business bookings growth by Small Business majors and National Account?
Carlos A. Rodriguez – President and CEO: We typically don’t get into specifics by area, but I think what we can say is we had double-digit growth really across all of those major segments in North America. Really Europe was where we had some weakness that brought us down to the 9% level.
David Togut – Evercore Partners: As a follow-up, if you could update us on Vantage HCM, is that still on track for general availability in September? Any related thoughts on head-to-head competitive performance of Vantage HCM versus some of the pure play SaaS providers and the big ERPs?
Jan Siegmund – Corporate VP and CFO: Yeah. David, its Jan. Vantage is available across the country for general release. Actually we have major upgrade releases coming up for the rest of the year and we are tracking very well against our expectations for new units sold, as well as new clients live. So, we’re making good progress. The numbers are still small, but against our plans we’re satisfied.
David Togut – Evercore Partners: So it is available for general release today?
Jan Siegmund – Corporate VP and CFO: It is, yes.
Paul Thomas – Goldman Sachs: New sales rebounded nicely the quarter, but I guess you’re up against a tough comp in June. And given your commentary about the weaker bookings in Europe, could you talk about your confidence level that you’ll still be able to grow and keeping 8% to 10% range over last year’s 20% growth?
Carlos A. Rodriguez – President and CEO: As you can imagine, this is — we’re not there yet so. We were confident last quarter that we would have, I think good results this quarter and we did. So, I mean, I’m always confident because we have really the best direct sales force in the world and I think they’re very effective. I think last quarter the fiscal cliff issues and some of the uncertainty with taxes at the end in the year, I think may have had some impact and as you can see, we’re able to come back in the current quarter. I mean sales are week-to-week and month-to-month, I can tell you that I’m very confident in our sales force, but we just going to have to wait to see what the results. But as you can see we kept our guidance, I think the same so we’re very comfortable with that range of 8% to 10%.
Paul Thomas – Goldman Sachs: Maybe one more on Vantage. You talked about just under 10 live last quarter and the target was getting to 20 live by the end of the fiscal year. What’s the progress there?
Carlos A. Rodriguez – President and CEO: I believe we have 17 as of last week, and so we will usually be at 20 and then some by the end of the fiscal year.
A Closer Look: Automatic Data Processing Earnings Cheat Sheet>>