There were several large transactions that we had forecasted to close that did not close the largest of which kind of made the difference between performance in the middle of our guidance range and missing the guidance range. That was a large European transaction that was interrupted by the company we were transacting with being acquired by somebody else late in the process and the transaction just being blocked on principal related the acquisition.
So that was a disappointing quarter, but inside that license revenue disappointment we actually made pretty good progress against the other elements particularly the margin expansion. So we posted a decent earnings quarter, better than people expected based on the license [mix] and the profit contained in the license.
So, it was by some measures a good quarter showing our commitment to and the progress we're making on margin expansion and then of course a disappointment on the license revenue line and we took down our guidance for the back half of the year commensurate with that.
Sterling Auty – JP MorganHi, good, all right. So let's jump in peel back a layer or two on a couple of those issues. Let's start with actually North America. I think you gave people a sense that you felt that it was more your own execution than something else happening in the macro world. Since you reported, ANSYS put up a quarter that showed decelerating growth as well. Now that you're kind of looking back, how do you feel about that? Do you still think that there's enough opportunities out there that it was more execution rather than macro that was impacting North America? Jim Heppelmann
Yeah. I mean in North America what I said in the earnings call and this was a pre-analyst call, right, I didn't at that point have the benefit of understanding how others did? What we said is that there were – let's see five transactions we expected to close in North America, not huge transactions like the one in Europe. But five that I would have expected to close that didn't. Read the rest of this transcript for free on seekingalpha.com