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I will take that. And before we start, I am going to have Tim just give us a little few comments on any comments we make today.Tim Fox So spare with me, but today’s presentation and Q&A may include forward-looking statements regarding PTC’s products or anticipated future operations or financial performance. Any such statements will be based on our current assumptions of PTC’s management are subjects to risks and uncertainties that could cause actual events and results to differ materially. These risks and uncertainties are on our Form 8-K, 10-K and 10-Q on file with the SEC. Question-and-Answer Session Jeff Glidden Alright now, back to the question. So just to be clear, this is really, we just reported our second quarter, so our fiscal year-end September. So, maybe perhaps, let me back up a little bit and say, we ended the fiscal year 2011 very strongly, had a very good year, revenues were up 16%, earnings were up 26% and our fourth quarter was very strong. We continued that with a very strong Q1, over-performed and over-delivered in Q1 and then disappointed in Q2. So, from a context from the mid-year point, we’re still on a very nice track. So we had a disappointing Q2 with revenues up 12% and earnings up 15% which was below our guidance. So but it was still an up quarter for us. At the mid-year point our revenues were up 16% and earnings were up 35%. So we feel that we’re on the right track and I think the discussion we’ve had is we have a lot of large enterprise customers, very large customers that are key to our business and while we do disclose large deals, we also disclose what we call mega deals. And a mega deal for us in $300 million quarter, these are significant where a customer will buy $5 million of license software or greater.
And we had two of those in the fourth quarter of last year, a strong finish, great quarter. Q1 we had two and we had none of those in the second quarter and we are out looking for several. We’ve had, there were several that could happen and as we indicated, one in particular and actually two were impacted by change of control that was beyond our control if you will. That said it is still incumbent upon management to plan and forecast on those and while they are -- they did not close, they're still in the hunt if you will. So we have a disappointing second quarter, but I think fundamentally a very good first half.And we look to the back half to be an improvement from that. That said we provided more conservative guidance for our third quarter and said while there is some large customer opportunities in that we are going to basically take any very large mega deals out of our guidance and provide guidance basically assuming none of those happen. I think that’s an appropriate thing to do and I think the questions we get so you gave us some long-term strategic goals and so forth particularly around margin expansion and growth and we believe those are intact. So our long-term through 2015 guidance is revenue growth of 11% to 13%, that's primarily organic as well as expanding margins from mid teens to mid 20s. So we think we are well on that way and we are up actually, we are targeting to expand margins by a minimum of 100 basis points a year with a current target of 200 basis points a year for the first half and we are up better than 200 basis points year-over-year. So I think the pieces is still intact, we did miss the second quarter but I think we have a pretty reasonable outlook for the back half of the year which will keep us on track for that long term set target. Read the rest of this transcript for free on seekingalpha.com