Service Provider & Enterprise Deals
Sterling Auty – JPMorgan: On the couple of deals you mentioned super high end can you talk specifically were those service provider related deals similar to the softness that we have seen by the SIs and Fortinets or were they enterprise deals?
Gil Shwed – Founder, Chairman and CEO: They were mainly enterprise and (indiscernible) task compared to last year because last year we had some one or two exceptionally large deals that we won and which we actually have a nice pipeline that can also work for that. But we will tend to shift and fluctuate between quarters and unfortunately that’s the main change in product failure this quarter compared to Q1 last year.
Sterling Auty – JPMorgan: I think the other…
Gil Shwed – Founder, Chairman and CEO: Competitive related, no, I don’t think that any of these deals will always build that are now still open and I think that’s part of the marketing. They are currently not very competitive to the deals we are seeing.
Sterling Auty – JPMorgan: Then I think the other topic that everyone’s been asking about the last couple of quarters is the timing or potential of return to growth for the product and license revenue line given the growth in revenue plus change in deferred and the guidance outlook. How should we think about the product and license revenue line for the June quarter? Should it be flat down or up year-over-year?
Gil Shwed – Founder, Chairman and CEO: I think we provided a wide range, so it can be any of the above. I think that we are looking for a resumption of growth in that line and I think it’s expected more towards the second half of the year and the last part of the year. Keep in mind that most of our new innovation and new security technologies are software blades that are accounted in the services line because they are annuity revenue. Their (indiscernible) actually growing very nicely in quantity, in revenues, in all the right measures and this quarter I think Tal spoke about 25% increase in the Software Blade revenues and I think that’s critical (system) for the last few quarters. So, I think a lot of the new innovation and the new products and technologies that we are launching are falling in a different line on the P&L but help a little big with the growth.
Shaul Eyal – Oppenheimer & Company: Tal, quick question for you on some of the comments you made. I think you indicated obviously that the super high end appliance came short $5 million, but however the ASP has increased on the smaller (indiscernible) appliances. Is that a metric you will be starting kind of to disclose and share with us on a quarterly basis? Again kind of what was the cause of the softness was it just kind of seasonality or just the tough field that you compared?
Tal Liani – Bank of America-Merrill Lynch: I mean just to clarify when we say super high end it basically means relating to the 61000 and as you know it’s only one in each half year slowed back. It typically sells a few units. It’s not hundreds of units. Therefore, if you have five or six deals in the second quarter you get four, and another quarter you get eight deals there is a different and Q1 last year was very, very strong. If you remember we reported that was the first quarter that it was eight digits, so $5 million out of which was quite significant in the total product bookings but it is one or two transactions. So, I wouldn’t read too much into that except for the fact that we sold less super high end deals that’s it. When it comes to the rest of the appliances, there is two things we sell, we sell – remember I just reminded that in Q1 last year our number of units increasing over 20%. So that was a very tough comparable into Q1, and we see a decreasing number of units, while we see a very healthy growth in ASP which compensated for that decrease.
Shaul Eyal – Oppenheimer & Company: A question on the deferred revenue. Obviously it’s strong metric this quarter. What was it driven by? Was it just a renewal products, services? What’s in there?
Gil Shwed – Founder, Chairman and CEO: I think the software blades, there’s more services. I think all are contributed to the deferred revenues.
Tal Payne – CFO: That revenue is mainly – remember, the majority of that number is the update and maintenance, which we had good renewals, we keep a steady renewal rate as it was for many years. So, we have great renewal rate and the software blades continued to increase that as well. So, that’s the main two factors.
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