Jul 30, 2008
Operator
Welcome to the Fiserv Second Quarter 2008 Earnings Conference Call. At this time all participants have been placed in a listen-only mode and the floor will be open for questions following the presentation.
Today's call is being recorded, and it is also being broadcast live over the Internet at www.fiserv.com. In addition, there are supplemental materials that will be referenced on today's call available the company's website.
To access those materials, go to www.fiserv.com and click on the access presentation link on the home page. This call is expected to last about an hour, and you may disconnect from the call at any time.
It is now my pleasure to turn the call over to your host Mr. Jeff Yabuki, President and CEO of Fiserv.
Jeffery W. Yabuki
Good afternoon, and thanks for joining us for our second quarter earnings conference call. With me today is our are Chief Financial Officer, Tom Hirsch.
Our remarks today will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We will make forward-looking statements about, among other matters, adjusted revenue growth, adjusted earnings per share, adjusted operating margins, EBITDA, cash flow targets, sales pipelines, our CheckFree integration efforts, the disposition of certain Fiserv businesses, and our strategic initiative Fiserv 2.0.
Forward-looking statements may differ materially from actual results, and are subject to a number of risks and uncertainties. Please refer to our earnings release, which can be found on our website at fiserv.com for a discussion of these risk factors.
You should also refer to our earnings release for an explanation of the non-GAAP financial measures just discussed in this conference call, and for a reconciliation of those measures to the nearest applicable GAAP measures. These non-GAAP measures are indicators that management uses to provide additional meaningful comparisons between current results and prior reported results, and as a basis for planning and forecasting for future periods.
We are pleased with our results for the quarter and for the first half of the year. Even in the phase of market challenges.
We are achieving our financial targets and moving the company forward strategically. Our key financial results as shown on slide 3 and 4 the supplemental materials were strong across the Board for both the second quarter and year-to-date.
And although internal revenue growth lagged a bit. Adjusted earnings per share, total revenue, EBITDA, and cash flow were all up significantly.
We continue to align the company with those areas where we have strategic advantage by selling majority interest in our insurance businesses, which closed in July. This transaction will allow us to focus on faster growing opportunities where we have scale and the more differentiated market position, such as payments, risk management and core account processing.
We received about $510 million a net proceeds to deploy and raise design to increase long-term shareholder value. While retaining a minority interest in the insurance assets that we now believe is more valuable given the expertise and experience of our new partner.
In our first quarter call, I shared our three main priorities for 2008. First, to deliver earnings results consistent with our commitments regardless of environmental conditions.
Second, to make significant progress integrating CheckFree and Fiserv. And last to enhance our level of competitive differentiation through innovation and integration, which leads to superior results for our clients and shareholders.
We made progress in the quarter across each of these funds. Our adjusted EPS from continuing operations was up 26% to $0.83.
And for the first six months of 2008, our adjusted EPS is also up 26% to $1.61. We're very pleased with our significant earnings growth in a market that many believe is one of the most difficult in years.
As important, as our strong earnings performance is a conversion of those earnings to free cash flow. We have generated $311 million of free cash flow through June 30th, up 73% over last year.
Most of our businesses such as core account processing, bill payment, debit and EFT processing has stable streams of recurring revenue, leverageable expense structures, and required limited amount of steady state capital expenditures. These attributes allows us to grow earnings and cash flow at attractive rates even in a challenging environment.
This earnings and cash flow leverage should benefit us even more as market conditions improve. Second, we continued to see solid execution with our CheckFree integration activities.
As expected the synergy impact ramp nicely in the second quarter leaving the $20 million of pretax benefit realized through June 30th. We are confident that we will achieve our $40 to $50 million cost synergy target for the year.
In addition, we are in the early stages of our 2009 planning cycle and are optimistic of our next year's overall expense synergy attainments. On the client side, we continued to get positive feedback on the combination with an openness to work together to create value.
Importantly, we have not lost a single Tier 1 bill payment client, since we announced the acquisition, which bodes well for our performance and market position. Our third and arguably most important priority for the year is extending our level of differentiation through innovation and integration.
We've made a lot of progress on this front in 2008, and the early returns are excellent. Our momentum continues to build as we deliver our market leading electronic bill payment services to banks and financial institutions.
In the quarter, we sell bill payments to over 140 clients and have assigned nearly 290 so far this year, of that total about two-thirds of the sales were made to existing Fiserv core clients. We are also seeing early success in two new products, which we believe will drive attractive incremental revenue and extend our leading market position in Internet banking and payments over the next several years.
First, we're introducing an ASP version of the Corillian Internet banking platform, which will allow clients to utilize those industry leading capabilities in a hosted environment. We had a significant competitive win in the quarter with a large Fiserv core client choosing our new offering.
Displacing the existing Internet banking provider and beating out another competitor. The client was willing to spend more money to access these best-in-class capabilities.
We believe this is an example of the healthy demand for our hosted Internet banking services. We are also excited about the new CheckFree online advantage product.
Our next generation online banking and bill payment platform, which will be in the market at the end of the year. This product is a highly integrated version of Internet banking, and electronic bill payment and presentment, which allows our clients to better serve their end customers to enhanced capabilities and a heightened experience.
Importantly, this new product will allow the financial institution to utilize the underlying data to generate new revenue for the institution. The early clients and prospect reactions to this product are excellent.
And we believe this could materially change the rules of the game. We will share more with you on our Internet banking and bill payment strategy at our Investor Day in November.
We are now starting to see revenue uplift by providing integrated products into the larger financial institutions, which were traditionally served by CheckFree. During the quarter, we signed an agreement with the top 10 bank to handle a portion of this check processing volume by leveraging our distributing capture solutions with our national footprint of item processing centers.
This pipe of innovated solution delivers meaningful economic efficiencies to our clients, as they content with a difficult environment. There are number of similar opportunities in our sales queue, which we anticipate will come to fruition during the remainder of the year and into 2009.
Before I turn the call over to Tom, let me share our perspective on the environment and its affect on our business. Most people would agree that the dislocation occurring in the financial services industry and its impact on the economy is a most significant to memory.
Over the last couple of years, we have been proactive and reshaping our company, which we believe will allow us to deliver solid performance regardless of the economy environment. Combining the impact of our acquisitions and divestitures over the last year with our strong core businesses will lead to significant benefits for our shareholders and our clients.
The weakness in the financial services industries having an impact on certain types of spend. Specifically, we are seeing pressure on discretionary technology license spending among large investment banks and financial institutions.
At the same time, this pressure is creating opportunity as the entire financial services industry is aggressively looking for ways to increase efficiency. We are in numerous conversations with large institutions to utilize our vast array of technology products and infrastructure to help them reduce cost, in this time of intense efficiency focus.
We are also seeing an increased discussion around our services offerings as clients looked us for advise and council, which we believe will lead to deeper relationships and incremental revenue. The community based the mid-Tier institutions have been impact lest uniformly.
Generally, that impact is tended to be more regional and somewhat dependent on the level of real estate concentration within their client base and portfolios. That said, the majority of our clients are focused in the fundamental areas in which we deliver products and services, acquiring deposits, extending client relationships, efficiency improvements, and risk management.
Our payments oriented businesses continue to experience solid double-digit transaction growth rates across the various platforms, such as bill payment, debit, and EFT processing, wire exchange, and remote capture. We expect to see continuing growth in these areas.
We expect license revenues, which represents about 5% of our total revenue to continue to lag historic purchase level. Therefore likely we pronounced in those areas where the investments are non-mission critical and discretionary.
However, the lion share of Fiserv's revenue originates from recurring non-discretionary products such as core account processing, and are typically based on accounts and transactions, which tend to grow regardless of the external environment. We anticipate the general weakness in the home equity and lending market to continue for the remainder of the year and into 2009.
However, about 90 days ago, we begin offering a home retention product, standard on loan modifications to one of the largest servicers and mortgage loans in the country. This product allows our client to proactively identify and interact with at risk mortgages and modify their loan arrangements before customers swap into default.
Although its early stage, we are quite encouraged by what could be a significant potential for this product to offset some of the weakness that we've experienced in our lending businesses. On balance, well there are headwinds facing the financial services industry as a whole.
We believe that our position as a solutions provider of mission critical non-discretionary technology products and services better insulates us from material fluctuations in earnings. At the same time the breadth of our capabilities gives us an advantage in working with clients today to increase efficiency and enhance their overall market position.
With that I'll turn the call over to Tom, for a more detailed discussion of the segment results and our balance sheet.
Thomas J. Hirsch
Thanks, Jeff, and good afternoon, everyone. During my remarks, I will refer to the supplemental information included in the slide presentation, which as we mentioned earlier is available on our website.
Revenues were 1.3 billion in the quarter up 38% over the prior year. Year-to-date revenue was also up 38% to $2.6 billion.
Adjusted operating income was $284 million for the quarter with adjusted operating margin increasing 150 basis points to 25.5%. To June 30th, adjusted operating income was $564 million and operating margin was up a 170 basis points over the prior year to 25.2%.
The increase in overall margin is primarily from continuing improvements in the business mix, including the addition of CheckFree, cost synergies attained through the CheckFree integration, and our continuous focus on operating efficiency. In addition to earnings growth of margin expansion, we know that converting earnings into cash flow is a very important element and trained value for our shareholders.
Our focus and discipline has produced free cash flow of $311 million for the first six months of the year, an increase of 73% compared to last year. In addition to proactively managing both working capital and capital expenditures, we believe that our current mix of businesses should produced improved levels of free cash flow.
Year-to-date capital expenditures are $92 million, up $14 million for last year level, which did not include CheckFree. We anticipate an increase in our second half capital expenditures, as we continue to invest in future growth.
Adjusted into our revenue growth for the combined financial and payment segments was 2% in the quarter and 3% for the first half of the year. There are several factors comprising our adjusted internal revenue growth rate in the second quarter, including the more difficult comparison for the legacy ChekFree businesses given the second quarter was previously the close of the fiscal year.
Some of our owners have asked for additional color on the items negatively impacting our growth rate, including Bank of America repricing, fold impact and the home equity business. Slide six of the presentation shows a negative impact of these items on our internal revenue growth rate, which is about two percentage points both in the quarter and year-to-date.
If you normalize for these items, our adjusted internal revenue growth rate for the combined financial segments would have been 4% in the quarter and 5% for the year-to-date. It's our view that the Bank of America contract repricing, which we announced in the first quarter and the interest rate impact on folding come in our bill payment business will not materially impact our 2009 or long term revenue growth rates.
Our home equity lending business is now delivered two quarters of fairly stable revenue, and while it remains subject to external market swings, period-over-period comparisons in the second half of 2008 and 2009 will improve. Now onto the segment results.
The financial institution segment generated revenues of $558 million in the quarter, an increase of 8% over the prior year, with a majority of the growth being generated through acquisition. Adjusted internal revenue growth in the quarter was 1% for the segment due to the significant weakness in the home equity business.
Excluding the home equity impact, the adjusted internal revenue growth was 4% both for the quarter and year-to-date. This negative impact should lessen through the second half of 2008, as our lending revenue comparisons improve.
Operating income in the financial segment was up 8% to $143 million in the quarter. With operating margin at 25.6% for the quarter and 25.4% year-to-date.
The year-to-date increase in margin was 40 basis points and operating margin was flat in the current quarter compared to 2007 primarily due to lower license sales and a slight change in business mix. Our Payments and Industry Product segment generated revenues of $540 million in the quarter or $466 million on an adjusted basis net of the pass-through costs for postage.
A substantial revenue increase over the prior year, due primarily to the acquisition of CheckFree. As a reminder, this segment's net revenue is split with about 60% of revenue derived from bill payment, EFT services and Internet Banking.
The remaining 40% of this segment consists primarily of our Output Solutions Division, Risk Management Software Services and the Investment Services Division. Adjusted internal revenue growth in the quarter was 2% for the segment and 5% for the year.
If you normalize for the BoA re-pricing and flow of impact, the growth rate was 5% for the quarter and 7% year-to-date. On a sequential quarter basis, the segments internal growth rate in the quarter was negatively impacted by two primary factors.
First, the combination of the BoA re-pricing that we announced in the first quarter and the flow of impact accounted for approximately 3 percentage points of the segment decrease. You will recall that the bottom-line impact of the flow of revenue decrease is very minimal.
As a rate base reduction is effectively hedged from an earning standpoint by reduced interest expense on a variable rate debt outstanding. The revenue issue will remain through 2008 and should not impact our 2009 or longer term growth rates.
Second, weaker installed license sales in the current quarter primarily related to risk management and others software products tied the larger tier 1 financial investment firms impacted sequential results. Also we are experiencing lower overall account growth in the investment services business due to equity market weakness.
Our sales pipelines equivalent [ph] risks and investment services software solutions are solid and should positively impact the second half as we close the transactions in the pipeline. In addition, this segment is impacted by quarterly fluctuations from the legacy Fiserv businesses.
We saw this last year as there was a five percentage point drop from the first to the second quarter, 13% to 8% in this segment. This seasonality in the traditional Fiserv businesses like Output Solutions generally has more pronounced quarterly fluctuations based on customer delivery requirements which historically have been biased to the first and fourth quarters.
Operating income for the segment was $134 million in the quarter with adjusted operating margins of 28.6% up 330 basis points over the prior year. Through June 30th operating income was $274 million and operating margin was up 250 basis points to 28.8%.
The increase in margin is due to continued improvements in operating efficiency, business mix including the addition of CheckFree and cost synergy benefits associated with the transaction. The legacy CheckFree business generated $311 million bill payment transactions in the quarter, up 13% year-over-year.
e - Bills delivered, which represents a very important growth opportunity and competitive differentiator were up 22% to $74 million in the quarter. We continue to see solid growth characteristics in each of these key bill payment metrics.
Termination fees in the quarter were $80 million compared with $30 million in 2007. The increase is attributable primarily to one client who was acquired in the first month of an 84 months contract in the second quarter that resulted in a more significant fee.
Overall however, merger and acquisition activity is down substantially compared to the prior year. Which should provide a to recurring revenues going forward.
Insurance segment revenues were $238 million in the quarter and $98 million on an adjusted basis. Adjusted operating income in the insurance segment was $20 million and adjusted operating margin was 20.2% a solid improvement over first quarter results due primarily the normal seasonality in the flood processing and business.
Beginning in the third quarter, due to the sales of majority interest in this business, we will begin reporting Fiserv profits related to our 49% ownership as a separate line item on the income statement. As Jeff mentioned earlier, we received approximately $510 million in net proceeds from this transaction.
As we explained last quarter, we are continuing to record a $2 million charge or $0.1 per share each quarter during 2008, which was a result of the employment agreement amendment, related to our offshore captive that we announced last year. Our net interest expense for the first half of the year is a $130 million with $62 million recorded in the second quarter.
Our year-to-date effective tax rate is 38.7% and we expect that for the remainder of 2008. In connection with our insurance transaction in July, we announced the new 10 million share repurchase authorization to replace our previously completed authorization.
For the year, we have repaid approximately $900 million of debt and have $4.5 billion outstanding as of June 30th. We will record our targeted debt EBITDA ratio is 2.5:1 by the end of 2009.
For the first six months of the year, our EBITDA was $685 million. We have scheduled debt repayments for our debt outstanding of $4.5 billion totaling $500 million over the next two years.
Now, let me turn the call back over to Jeff.
Jeffery W. Yabuki
Thanks Tom. We've again delivered solid results against our key Fiserv 2.0 initiatives.
Our integrated sales performance continued to gain momentum as we closed about $20 million of recurring revenue in the quarter. For context, it took us nine months to break the $20 million mark in 2007, something we get this year in just one quarter.
For the year-to-date our integrated sales was $35 million or 54% of our full year objective of $65 million. Bill payment, debit, EFT, Fiserv Clearing Network, Internet Banking and remote capture products are contributing the bulk of our sales results.
Our operational efficiency goal for the year is to realize an incremental $20 million in 2008 in addition to the $20 million achieved last year. Through June 30th, we've realized $13 million or 65% of our full year goal and we're on track for the year.
Sales quarter performance was strong in the second quarter and their year-to-date quarter attainment now stands at 99% of goal. Sales results and pipelines continue to gain momentum, which is an affirmation that our products and services are desired by the financial institution marketplace even today.
You will recall that sales quarter performance does not include integrated sales that I highlighted a few moments ago. We are having increased success in the bank core processing space this year.
Overall, there are fewer new core opportunities available, for two primary reasons. First, a greater reluctance by clients to switch which given us our scale, we believe we will benefit from, and also fewer to novel banks opening this year.
However, through June 30, we have won a much larger proportion of the available deals than we have over the last several years. We mentioned one such win in our earnings press release earlier today.
Our new core processing relationship with Omaha Financial Holdings, the new banking division of Mutual of Omaha; this institution has already acquired three banks and very recently announced the acquisition of two additional institutions. We are currently working with Mutual of Omaha to bring the processing of all of those accounts to Fiserv.
We are providing core account processing solutions integrated with a number of ancillary products to help Omaha Financial grow as rapidly as they can. We see this as a clear example of how our breadth and knowledge can help institutions grow in today's environment.
Overall, we feel good about our sales results and our Fiserv 2.0 progress. We believe the opportunities in the back half of the year will build our second half performance and help us jump start 2009.
We expect our full year adjusted earnings per share from continuing operations which includes the $0.02 to $0.03 dilution from the sale of the majority interest in our insurance business to be within our range of $3.28 to $3.40 per share. We anticipate that the results in the fourth quarter will be stronger than the third, due primarily to the additional CheckFree a synergy ramp and the impact of divestitures on current year results.
We expect internal revenue growth in the combined financial and payment segment to be at the low end of our 4% to 6% range. This range includes the two to three to four percentage point negative impact related to the BoA re-pricing, slowed income and also the impact from our home equity processing business.
As we stated at the beginning of the year, our second half revenue growth should improve as our lending comparisons improve. We now expect adjusted operating margin for the full year will increase by at least 125 basis points for the full year versus our previous guidance of 100 basis points.
And given, the exceptional cash-flow performance for the first half of 2008 which includes the negative cash-flow impact from the insurance sale in the second half of the year. We anticipate that full year free cash-flow growth will now be in a range of $550 million to $575 million.
I mentioned at the top of the call, that we're on track to achieve our three key priorities for the year. As you've seen in our results the strength of our business model is allowing us to absorb market fluctuations and still deliver earnings growth and cash-flow in excess of our long-term performance outlook.
We have made great strides in integrating CheckFree to enable our clients and your shareholders to realize the benefits of this powerful combination. Our sales pipelines continue to grow even after a very solid sales performance in Q2.
We are increasingly confident, that our new products and innovation will lead to enhanced revenue growth in late 2008 and into 2009. We will manage the company prudently in this time the of industry flux, with a strong focus on building the company for the long-term.
We believe the uncertainty in the environment is creating material opportunities which play well to our strengths. At the same time, we will not grow revenue for revenue sake.
We will continue to take the position that our role is to build value for the long-term. We have made significant progress in that area, and we will continue on that path.
As always, I'd like to recognize the hard working commitment of our associates around the world who are responsible for the results that we deliver each day. Our people are the manifestation of our privileged client relationships, and they work closely with our clients to ensure we're them the solutions they need.
Finally, before we take questions, we'll be holding our 2008 Investor Conference on November 11th, in Boston. Please mark your calendars for the event and contact our Investor Relations group to register, as space is more limited than it has been in the last couple of years.
Stacy we'll now open the lines for questions. Question And Answer
Operator
Thank you. [Operator Instructions].
Our first question comes from David Koning of Baird.
David Koning
Yes, hi guys and nice results.
Jeffery W. Yabuki
Thanks David.
David Koning
I guess first of all, if we just summarize kind of your thoughts around the environment, is it fair to say that its pretty much business is usual excluding the home equity in license headwinds maybe for of a couple personnel, but other then that it is generally business as usual?
Jeffery W. Yabuki
Yes, I mean for certainly for where we are today on July 29th, that certainly is the case and its hard to ignore all of the headlines and all of the noise out in the environment. And so I think our people would say they're quite pleased with the performance given all of that noise, but as much as I just have to agree with that I mean we are its largely business as usual.
David Koning
And maybe if you would... could you kind of outline what would happen, tomorrow we wake up and we see headlines that a 100 banks failed, on the last week, or is there something like that.
How would the scenario like that affect Fiserv?
Jeffery W. Yabuki
It's a great question. One of the things that's interesting is that as banks fail, the accounts don't go away and the transactions don't go away, they are merely transferred to either a receiver or to an acquirer or.
And in those cases, we believe and obviously there are some regional differences but in many of those cases, we believe we will actually benefit from that kind of move given the scale that we have. So if we were to see situations where these banks failed, if we were the contract holder in that case, we suspect we would continued to process for the receiver and if they were acquired, we would believe that base in our scale, that more times than not we would actually be the core processor for those banks.
And again I'm assuming in this question, really talking more on kind of the community based institution front where we have a very significant amount of share and in those cases we think we would be likely neutral, but would be no less or neutral but in most cases we would actually be net positive.
David Koning
That's great thank you and just one, quick final one. The payments margin has come down sequentially for a couple of quarters I know part of that is due to BoA.
I'm just wondering should we expect that to ramp back up towards 30% plus over the next few quarters?
Thomas J. Hirsch
I think, over all David, this is Tom. We'll continue to see leverage in that Payments and Industry Product segment.
Obviously in the current quarter, we did have the impact compared to the first quarter to BoA re-pricing and the slowed impact that does drop to the bottom-line there are net operating income but going forward as we generate continued costs synergies and leverage that business, we're going to continue to see improved margins.
Jeffery W. Yabuki
I would also add to that David that that segment is much as it's labeled payments and industry brought-offs or payments there are about 40% of the revenues in that segment are payments related not sure payment margin product and so well I do believe Tom is right it will revert, I think it will revert back kind of a nice gradual build because there are variety of different businesses in there all payment related but not necessarily just an EFT processing or Bill Payment business.
David Koning
Okay, all right. Great job, thanks.
Jeffery W. Yabuki
Thank you.
Operator
Thank you. Your next question comes from Bryan Keane of Credit Suisse.
Bryan Keane
Hi, good afternoon.
Jeffery W. Yabuki
Hi, Bryan.
Bryan Keane
Jeff could you explain again how the sales quota numbers translate into future revenues again?
Jeffery W. Yabuki
Sure. We measure our sales quota to each year we set quotas and they are distributed across our sales force.
The reason why we don't talk in terms of revenues, than we talk in terms of percentage for purposes of sales quota is we have different ways of measuring them in some cases we measure recurring revenue, in some cases we measure a combination of recurring revenue and one time especially if they're consulting oriented engagements. But from our standpoint we set quotas in a way that allow us to be able to achieve the growth that we believe we should attain in subsequent years.
So we have quota, we have quota attainment, we have integrated sales, we also have a group of sales to existing clients that don't fall into either of those two buckets when their products have delivered through the core, but if you added all of those up, you would find... you would get a good indication for what our subsequent year revenues look like, are going to look like.
So where they ramp in with expectation, acts the amount of attrition that we might see or any changes like that. So to a extent that we're performing at or near 100% that is at least a positive tailwind for us in looking at our revenue performance in subsequent years.
Bryan Keane
It's not an immediate impact it's probably a six to nine month lag at least?
Jeffery W. Yabuki
I mean the way we look at quarter most of it is on annualized recurring revenue type basis its normalize we call it normalized. So there is always going to be some performance.
So that what we've sold to-date will have some impact in Q3 and Q4, what we sell in Q3 will have a very limited impact on Q4, and but all of that will have an impact in the subsequent four quarters, so kind of rolling four quarter basis.
Bryan Keane
Okay. And the reason for the picked from, I think it was 91 or so last quarter to 99 would that just better closing better way, you know, better business leads what happened exactly to beat [ph] that percentage?
Jeffery W. Yabuki
You may remember us talking Bryan that, that the end of the first quarter our pipelines were the biggest they had ever been, and so we had just the good fortune of having that pipeline begin to convert the sales. Our pipeline is still pretty strong, and so we believe that we will continue to have good performance throughout the year.
But, it was a little bit slower in the first quarter, although it usually is, and then the bump was a little bit larger in Q2 than we had seen historically. But, I would really attribute that to the size and breadth of the overall pipeline, as well as I think we mentioned that we are starting to see some larger, larger sales transactions making into the pipeline.
We had one of those closed in the second quarter, and we are hopeful that we will see a couple of additional opportunities like that come to fruition in the second half of the year.
Thomas J. Hirsch
And I think just to add to that Bryan, the core comp process in the banking area has been strong as Jeff indicated. We have done a nice job of closing the majority of those transactions that have been available out there and that really continues to go, bode very well for the long-term, because most of that has been generated on the outsourcing side, and so that's the other positive thing that we see in the pipe.
Bryan Keane
Okay. And then just last question on CheckFree.
The bill pay transaction volumes sequentially went more flat. I guess are you happy with those numbers, or just seasonality in there or anything to explain, and I'd thought it would have picked up a little more in then.
Thomas J. Hirsch
Yes, it's up about 1% and 1.5% I think over the first quarter, the first quarter has been historically stronger. We do see at least in July so far to-date.
We see good activity there, and so overall we haven't had really any significant changes from that standpoint.
Bryan Keane
Okay. Congratulations on the execution.
Jeffery W. Yabuki
Thanks, Bryan.
Operator
Thank you. The next question comes from Greg Smith of Merrill Lynch.
Gregory Smith
Yes, hi guys.
Unidentified Company Representative
Hey, Greg.
Gregory Smith
The weakness on the license side is that primarily coming from the legacy CheckFree business their software business?
Thomas J. Hirsch
Gregg it's Tom. Yes, it's just primarily because of the Tier 1 focus both on the risk management and even low that with the Corillian and larger software licenses because that's going to those Tier 1 financial institutions.
The other thing I would say is that well the quarter from an install license standpoint was a bit lower from a reorganization of revenue of standpoint, as you can see in our cash flow statement our deferred revenue is actually fairly positive this year as far as growth compared to where it was last year. So some of that is timing as far as installation of that, but nonetheless it was primarily in the risk management, in software components that really geared that and it was a difficult compared to the second quarter of last year also.
Gregory Smith
Okay. And then as we look at your guidance range I think you have said when you are initially provide the range that the low end of the range reflect the possibility of some larger deals that could include some startup costs.
Just wondering if you can get an update on are there any these larger deals out there. So what is likelihood the guidance could even coming at the low end of the range?
Thomas J. Hirsch
Yes, Gregg, I think what the majority of that discussion on larger deals with start-up costs and lower margin, as I recall it was really centered on the level of our operating margin. I think we'd said it would be at least 50 basis points or at least 100 accountable right now.
But, there was a lot of discussion on we would willing to take in revenues that were below our average margin if they were scale, and we thought they would at they were long-term they would add value to the client base overall, and so that would have some impact on the lower end of the range it was really more of a margin discussion. The reason that we have that you may have remember the reason why we have the broader range this year, then we had historically was really just kind of some of the uncertainty facing the market and really to your earlier question, what would happen in the license sales and what impact would that have obviously a change in license revenues has a fairly material impact on your overall profitability.
From our standpoint as we think about guidance, well we didn't take guidance down as a result of the insurance transaction. We did...
we do see that to be dilutive in the second half of the year and obviously we'll work hard to redeploy the proceeds to make sure that we mitigate that dilution and its one of the reason why we're able maintain guidance that we at the level we have is because we had good performance this quarter and our outlook looks goods for the remainder of the year.
Gregory Smith
Okay. And then just last question, on the insurance business can you, just talk about your confidence that the new majority owner will be able to grow that business and what do you think the ultimate outcome here is it in IPO of full sales of them, full sale to another private equity firm, how you're thinking about that?
Jeffery W. Yabuki
Yes, Great, great question Greg. The deal that we did with Stone Point Capital is, we looked at a lot of different options, Stone Point is really a firm that is specifically insurance based I think they were, they're kind of derivative of the MMC which is Marsh & Mclennan, so they have a lot of expertise and frankly industry connections that we think our assets will benefit from.
And frankly they also have the time and energy to put into making sure that it gets managed well. So we do believe that we will be able to have that asset build and value overtime, I mean obviously from my standpoint I like that the efficiency of being...
potentially being able to spend or something like that, we'll look for ways that are most tax efficient, but if we can in a few years, if we can figure out how to create a lot of incremental value, we think we have a good track record of redeploying capital and so we wouldn't mind taking that in either. So, we're look at a variety of different options, but obviously tax efficiency will be at the very high end of how we think about this given the tax benefits that we experienced now, the remaining dollars that come into the future, obviously can be subject to tax at fairly high marginal levels.
Gregory Smith
Great. Thank you.
Jeffery W. Yabuki
Thank you, Greg.
Operator
Thank you. The next question comes from Tien Tsin Huang of JPMorgan.
Tien Tsin Huang
Hi, thanks. Jeff I just wanted to check your confidence level in achieving the 4% turn up growth for the year.
How much visibility do you have into that?
Jeffery W. Yabuki
Yes, we... Tien Tsin we have a reasonable amount of visibility.
We have a fairly disciplined way of reforecast the company every month. We spend a lot of time looking at this data and so given what we can see in the environment today, we have a fairly high degree of confidence that we will have growth that's higher in the second half, and that will turn us, turn us into achieving the low-end of our guidance range as we suggested.
I could lay out all the caveats that we talked about earlier, but for right now we're confident, we'll make it.
Tien Tsin Huang
Okay. Then on the insurance deals congrats on that, how do you expect to be back in the market to buyback back in maybe do you have enough paid in your advertise for share repurchases versus debt retirement?
Thomas J. Hirsch
Yes, this is Tom. Our investment criteria, it really hasn't change from the capital deployment standpoint obviously firstly look to fund their internal investments acquisition share repurchase and debt repayment.
We have made a lot of progress on the debt repayments side, paying down about $900 million to-date. So we did announce that share repurchase authorization in early July and we plan on utilizing that over the next couple of quarters along with deploying that capital in other areas both internally and also looking at acquisitions to the extent are there.
Jeffery W. Yabuki
I would add to that Tien Tsin that given the success that we're having and executing the business right know, kind of putting the two companies together everyone saw the $311 million of free cash flow, and we expect that to continue to perform well. It's really raised our confidents, and I think made everyone comfortable that we're going to be very easily able to meet our dead obligations.
And so given where we are today, and given our strong desire to minimize the level of dilution in this transaction. We'll take appropriate actions as soon as we're able.
Tien Tsin Huang
Excellent, excellent. And then the final portion of ISS sale that's sale, that's still on track right, for the end of 3Q?
Thomas J. Hirsch
Yes, its still tracking towards the end of the third quarter?
Tien Tsin Huang
Okay, last quick one, Tom as pricing any changes in the pricing environment, or are there financial repayments?
Jeffery W. Yabuki
No, it is... there has been a lot, I think the first quarter, and there was a lot of discussion on pricing and price compression.
I don't think there's anything, any difference in the environment, I think you are seeing... you are seeing actually a less of a willingness by incumbence, the incumbent clients to make switches on their technology and we know that and they know that and the clients are smart and they are continuing to push hard.
And as I mentioned our transaction growth is still pretty robust. And so that's going to continue to lead...
kind of I think similar levels of compression that we've seen historically. I actually I am a little bit more comfortable today on compression than I was in the first quarter.
I think people are settling down and I think we're focused on execution and as are the clients.
Tien Tsin Huang
Very good. Thank you
Jeffery W. Yabuki
Thank you.
Operator
Thank you. The next question comes from Chitra Sundaram, of Cardinal Capital.
Chitra Sundaram
Hi, thank you and congratulations.
Jeffery W. Yabuki
Thank you.
Chitra Sundaram
Could you just... I just want to clarify one thing, so on the payment side, when we say 1% organic growth you have to add back another percent for the BoA and float income and so the remaining when you compare to Q1, the five percentage points that is because of in the license and risk management.
Do I understand that correctly?
Thomas J. Hirsch
I think so may I can just clarify that a little bit, are you talking just about the Payment segment?
Chitra Sundaram
Yes.
Thomas J. Hirsch
Yes, the Payment segment, the actual rate just in payments was 2% a little bit over 2% for the quarter. And then we had the Bank of America in the float impact, which for the quarter was roughly about three percentage points.
Chitra Sundaram
Okay.
Thomas J. Hirsch
So it was roughly 5% and again what I was kind of trying to focus on was that the impact's that we had in the quarter and we do have things that impact us on a quarter-over-quarter basis was primarily the 40% of revenue in that segment that is not tied into bill pay EFT that's are output solutions in the risk management pieces which were little bit lighter in the quarter as far as installed licenses and also the difficult comparison we had in the those second quarter of last year. So we are at 5% on adjusted basis for the payment segment and year-to-date we're at 7% on adjusted basis excluding the BoA re-pricing the flow which again as we look forward to '09 and then into the future, should not be an impact.
So that's kind of where we are for the year as far as that segment goes.
Chitra Sundaram
Okay, brilliant. And then in amortization and the $44 million for the quarter should we just sort of extrapolate that for the rest of the year?
Thomas J. Hirsch
Yes, I would not extrapolate that full amount we did as a slight catch-up because of the true-up of some of the purchase accounting with CheckFree, well I would take the first half of year and double it that to get about all it need to big.
Chitra Sundaram
Okay. And CapEx trends for rest of the year, how should we think of that?
Thomas J. Hirsch
I think we'll continue to... as I indicated in my opening comments, we will have a low higher level of CapEx in the second half which has been factored into our revised free cash-flow estimates.
Chitra Sundaram
Okay. And lastly the number of shares that in your guidance you are sort of assuming kind of flat share account year-over-year or...
Thomas J. Hirsch
What we have indicated is part of our capital allocation we did receive the $510 million after-tax we will be redeploying that into share repurchase, as we announced our 10 million share authorization. So I think in over next couple of quarters you'll probably see that come down a little bit.
Operator
Thank you. Our next question comes from Kartik Mehta of FTN Midwest.
Kartik Mehta
Good evening Jeff.
Jeffery W. Yabuki
Hi, Kartik.
Kartik Mehta
A question on CheckFree Jeff. As you look at CheckFree now, looking back and at least in the short-run what do you think is gone right and what do you think could improve.
So I'm trying to figure out where you really having success with the acquisition and where you really have the opportunity over the next 12 to 18 months or even longer?
Jeffery W. Yabuki
That's a great question. I think the areas where we could improve is have we done something like this before.
We would have been... we would have known...
we would have had a better idea of some of the just in general cultural integration challenges that you have and well frankly, we haven't had very many, because we've really learned that the CheckFree associates and the Fiserv associates are actually interestingly fairly in sync. You just go through a fair amount of a simulation to come to the decisions on how you're going to execute your business and so that, that's took sometime and so I wish we would have been able to better anticipate that.
From a kind of a end market, I don't think there is a lot we could have done differently, I think we're making great progress in working with the large financial institutions. We are just actually thrilled at how our bill payment, our bill payments delivery is going in integrating that into the core and probably the thing that I am most excited about right now is we have a very unique opportunity to integrate our capture a kind of a remote capture, distributive capture solutions with our item processing footprint and really go out and do things that CheckFree couldn't have done on it's own and we couldn't have done on our own in a way that could have really attractive returns for shareholders.
So I'm pretty happy with really how the acquisition is going in general and Kartik, I'm always going to be able to come up with a much longer list of things that I wish I could have done, we wish we would have done better, but on balance our people in both organizations are doing great job and we're pretty happy.
Thomas J. Hirsch
And Kartik, I'd just like to add a couple of things from my perspective is first of all, from a client standpoint not losing a client through this acquisition is been tremendous, the RevE component of the Carreker business has been some very nice upside and that business has been incorporated into our financial institution group and we've seen a lot of positive of that particular business and just overall from an execution from the financial standpoint, the cash-flow of the business and just the associates and their commitment working with Fiserv in our integration activities has really been fantastic. So, I think just a lot of good things have happened this particular acquisition.
Kartik Mehta
Jeff, I wanted to get your thoughts on the overall growth of the market. We're always talking about the internal growth and obviously comparing it to the year ago quarter and I'm trying to figure out what do you think is the overall internal growth, organic growth of this market and maybe we have a comparison to the industry?
Jeffery W. Yabuki
Well there is no... unfortunately Kartik there is no perfect...
there is no industry benchmark for what kind of the aggregate growth is for all of the kind of data processors etcetera and so the prophesy that I believe people have used historically is what's technology spend for banking and then financial institutions space which is kind of been the four to six range. I've seen a number of different reports and consultants and pundits, who are talking about the fact of that number, could be substantially less, it could be more or like 2%.
The problem that I have in using any of that data is because we have such a wider ray of products. We have over 800 different products in our mix.
The growth rate associated with debit is much different than the growth rate associated with servers. And so, I don't have a good prophesy, for the industry except to say that I believe that Fiserv should be able to grow at a level that is a multiple of whatever the industry is, and given the kinds of things that we're doing.
So, that's our take right now. We'll talk about this in more detail in November, as we really lay out, how we see the future and kind of breakdown the different industries and the growth rate inherent in those industries.
I would also say that I've become increasingly confident that the revenue that we need to generate the internal revenue that we need to generate is can be less than I thought two years ago, given the leverage that we have in our business models, so I think we could grow, I think we'll be able to grow at our earnings at rates that are higher than I thought we would be able to do historically; given the additional CheckFree and some of the other things that we've done on the efficiency side, but again we'll talked about that in some detail in November.
Kartik Mehta
And one last question Tom, you talked about the payment segment, I just wanted to make sure I understand the financial segment and maybe sequential margin improvement you'd anticipate out of that segment for the rest of 2008.
Thomas J. Hirsch
That was the I am sorry, Kartik was that the financial segment?
Kartik Mehta
Yes, Tom.
Thomas J. Hirsch
Yeah, we've had very solid margins in there. We are not giving obviously segment guidance.
We are saying that in total we're going to be up about at a minimum of 125 basis points. We have had the lending to have an impact in that particular segment obviously that business is down and has a margin impact and licenses were a little slower as far as installed in the second quarter, but overall we should continue to see improvement going forward over the long term and again, we gave combined guidance on the financial payments of 125 basis points.
So notwithstanding the license revenue impact on a quarter-over-quarter basis, our margins are continued to... over a long term going to continue to improve.
Kartik Mehta
Thank you very much.
Jeffery W. Yabuki
Thanks, Kartik.
Operator
Thank you. Your next question comes from Julio Quinteros of Goldman Sachs.
Julio Quinteros
Great, thanks. The 125 basis point and the improvement in the organic revenue growth for the year; what is the implied assumption there for termination fees in back half of the year?
Thomas J. Hirsch
We have typically not had a lot in the back half of the year and so there's not a lot baked into to that for that particular area.
Julio Quinteros
Okay, great. And then for, for the growth in EBITDA and free cash flow as you think about that in the second half of 2008 is that beginning to moderate or how do we think about the pace of it given, how strong it has been so far in the first half of '08?
Thomas J. Hirsch
Well I think we've given, we've increased our guidance for free cash flow, we've taken into that guidance the, for the year the increasing capital expenditures. We obviously have done a substantial in a working capital front in the first half of the year, but we're very confident in that free cash flow guidance, and the only thing in the second half it's a little different.
Julio as obviously the insurance piece will be last compared to the first path. Will we have the full cash flow from those businesses versus potentially our share of that particular cash flow, so that the only think to consider.
Julio Quinteros
Okay. And then on the declines that you added on the bill pay I think it was 146 you were trying to payment the clients, what's your general sense on the average revenue per client that you are adding that?
Jeffery W. Yabuki
Yes, you know it's a... Julio it's a little bit of a, it depends on the client.
We typically have not talked about that. I would say that we've not talk about it specifically on a client-by-client basis.
But I would say by...
Julio Quinteros
Overall..
Jeffery W. Yabuki
I mean if Fiserv is to be smaller than what CheckFree would be doing on its own because a lot of this is going to core.
Julio Quinteros
Okay.
Jeffery W. Yabuki
And we think that, that even though it will generate some nice revenue gains over the next 12 months that as you know because this is a fast growing transaction business that, we will benefit from that growth for a number of years to come.
Julio Quinteros
Great, and then finally just where are we in terms of thinking about international opportunities, international sales strategies, any updates that you can give us there in terms of where you are thinking about going as we think about more of the global opportunity for Fiserv?
Jeffery W. Yabuki
Yes, we will talk a little bit about that in November Julio. But the, kind of the short-hand version is we have been really focused on integrating CheckFree and making sure that we have a sustainable model here in the U.S.
We think we are getting quite close to that and I suspect the 2009 will be the year in which we put extreme amount of focus on what to do internationally.
Julio Quinteros
Great. Thanks guys.
Jeffery W. Yabuki
Thank you.
Operator
Thank you. Your next question comes from Charlie Murphy of Morgan Stanley.
Charles Murphy
Thanks, Jeff. What processing revenues have been weak for, or they seem to have been weak for a while.
What do you expect in that business for the back half of this year, I know its profitable revenue?
Jeffery W. Yabuki
Yes, we are changing Charlie, obviously we are going to have 49% share of that. So as the transaction close, we are going to be reflecting the income on a one line item net of tax.
It's not going to have any benefit from that standpoint but I do think that business is a well run business, we have the leverage more that business through our partner, partnership was Stone Point and that business should improve over the second half of the year due to the a premium gains they have had in that business along with other efficiencies. But that well be reflected on our top line just because of the transaction closing that we did here in regard to that insurance sale.
Charles Murphy
Okay, great. And is very quick follow-up is it fair to assume in second half of this year that home equity business will not be a material drag on organic growth?
Jeffery W. Yabuki
That's correct, it's going to continue to improve as we go through the second half of the year because a couple of things are happening. One the comparison become much easier as we go in to Q3 and than much easier as we go in the Q4.
That being said we have had stable revenues in that business in the first and second quarter. But, it is something that we continue to watch closely, but we are going to have improvement...
forecast improvement in the second half just because of those comparison if we stay we are right in that business.
Charles Murphy
Thanks very much
Jeffery W. Yabuki
Thanks, Charlie.
Operator
Thank you. Our next question comes from Glenn Greene of Oppenheimer.
Glenn Greene
Thank you, Good afternoon, guys.
Unidentified Company Representative
Hi, Glenn.
Unidentified Company Representative
Hi, Glenn.
Glenn Greene
I just want to go back to the macro environment Jeff and just sort of get your thoughts on it's sounds like business as usual generally business as usual. If you sort of looking out six to nine months how would you sort of handicap what you would be worry about, whether its increased bank consolidation further pricing pressure it's sounds like you are not too worried about bank failures meaningfully impacting you.
Just sort of how to you sort think about the issues that may or may not impact in order of the magnitude?
Jeffery W. Yabuki
Sure, and I should probably clarify that good of the e-mails that I'll get after this, business as usual is kind of a more of a broad monitor, I think, again I think there is a lot of consternation and pensiveness in the marketplace whether it would be consumers or their financial institutions I think a lot of people are paying attention we are not talking about business as usual, I mean that for the most part people are still focused on getting new clients, gathering lower cost deposits, extending services and then of course you have to obviously look for efficiency and manage like inventory risks and those kind of things. So that doesn't go away, I mean that's kind of a mandated a being by institution.
Much of our revenue is connected to that kind of activity. So that when we talk about business as usual that's kind of broad strokes.
In terms of you look out six to nine months and I think we are going to continue to see the weakness that we are seeing in the general landscape now I think we will continue to see kind of at least for one more quarter if not two more quarters its just kind of the continuing headline noise and I think that, that will continue to affect people psychologically. The bank failure point s I mean you have to go back to the late 80s to see the kind of failure, the failure rates that that people are talking about now again its our sense and really trying to breakdown the businesses that failures are really kind of brake and motor issue and not account and transaction kind of issue.
And so again the, as a scale participants there I believe we will, we could have accounts switching from institution to institution, but on balance I believe that the net wins that will overtake any losses that we would have in that space. So from my perspective I am not too worried about that item.
So, no I think we are going to have generally just an extension of what's going on now or an elongation of what's going on now. And I would reiterate though that the place the business as usual is not the case, is really in this term of art, that we're playing around within that non-discretionary, non-mission critical technology licenses and I do think that people are going to be, they're going to keep their hands on their wallets a little bit more in those categories, because until we can see signs that we've hit bottom, I think people are going to save up for a rainy day.
So I think that's the area, that's the industry in general has the most risk.
Glenn Greene
Your neighbor had his conference call, couple of days ago, you sort of talked about his inventory was increased bank consolidation, that's kind of what was getting at. If you sort of look at the various factors for those pricings slowdown and discretionary spending, increased consolidation, bank failures would not.
Would bank consolidation be the most worries something?
Jeffery W. Yabuki
Well, that's a little bit of a new launched question. Because we are in the interesting position, the majority of our core processing is done to...
done with community based institutions for the banks or credit unions. And I don't think you're going to see a massive amount of consolidation in that space that would actually take the core processing out of that space.
If you go up to the Tier 2 or the mid tier of the market, you can easily see scenarios where the core processing that occurs there could be consolidated across the mid tier or even more interesting is could that mid-tier go into Tier 1, and most to the Tier 1 banks do their own core processing. And so if you're providing services to that group I think you have more risk.
Our risk profile doesn't carry that because again, our core processing is centered on the community based institutions base and the services that we provide at mid tier and the top tier tend to be our internet banking our bill pay, our risk management services and we think in those cases given our scale that we won't be affected in any of that.
Glenn Greene
Okay--
Jeffery W. Yabuki
At least not materially.
Glenn Greene
That's very helpful. And then just a different direction and you alluded to a little bit but just sort of an update on the discussions with the larger financial institutions, the pace of activity is it stay strong like it was in the last couple of quarters and your optimism by landing some meaningful bills by the end of the year?
Jeffery W. Yabuki
Well, we are little bit less focused on deals at this stage given all that we have going on and the levels of opportunity that we have. We continued to survey the landscape as there are transactions that may become available, but we...
our priority is around capital deployment are fairly clear and we stated them, and we have a lot of capital and a lot of ability to do things what we want to be focused on, on delivering value for shareholders right now.
Operator
Thank you. Our next question comes from John Kraft of D.A.
Davidson.
John Kraft
Good afternoon. I'll just to make these hopefully very quick clarifications with Jeff that bill pay wins 140 obviously nice numbers two-thirds of those were to existing core clients.
Are those primarily being sold by your core account reps or by CheckFree reps?
Jeffery W. Yabuki
That's an interesting question. These are being sold primarily by our account managers who work in our core processing businesses.
We worked very hard as part of our team two, team two initiatives to educate our account managers on the different products that we have, and we put significant energy since we acquired CheckFree to be able to educate our people and how to work with our core processors whether those are green field opportunity or competitive displacement. So that really is being done by our account managers with support coming from both the CheckFree organization as well as our pay checks organization.
John Kraft
And CheckFree reps primarily still kind of cater to whether use to the larger bank market?
Jeffery W. Yabuki
Absolutely, and calls for top 200.
John Kraft
Okay. And then this online advantage product that you've mentioned, sounds interesting.
Presumably using some the Corillian technology, is that going to be sold both as an Internet Banking and Bill pay offering and will it be subscription?
Jeffery W. Yabuki
In fact the initial release of the product is the hosted model. We probably will not have the license model available till late in 2009.
It is a very tight integration between the currently in the voyager platform and our EBPP. And so, we will...
there will clearly be the capabilities both consumer experience so as well as some other revenue things that I referenced that will only be available in that product, and so we think we'll some pretty nice capabilities there we'll also... we planned to actually do some fairly a deep dive and do demos of this in November, so we're excited to show it to all of you.
John Kraft
Okay, great. And then lastly the success, the recent success in the denoble [ph] market is that what would you attribute, that what you're doing differently now?
Jeffery W. Yabuki
Yes, it's really not so much in the deniable [ph] market, because the deniable market is actually shrunk a lot it's in the competitive in competitive displacements and where we the majority of our wins have come this year, and I really think it comes from us having a more, a more robust value proposition because we're going to market as one Fiserv in terms of not just making sure that we're having the right core processor at the table, but making sure that we have the breathe of capabilities that we have whether they be CheckFree bill payment or whether it be voyager's Internet Banking platform, EFT, net economy, a bank intelligence whatever it is, we're really bringing the entire enterprise to bare on the market and frankly that's paying some pretty big dividends.
John Kraft
Okay, great. Thanks guys.
Jeffery W. Yabuki
Thank you.
Operator
Thank you. Your last question comes from Pat Burton of Citi.
Jeffery W. Yabuki
Hi Pat.
Patrick M. Burton
Hi, congratulations on the quarter.
Jeffery W. Yabuki
Thank you.
Patrick M. Burton
My question is on $10 million share buyback, is that just from the sale or is there an additional authorization still in place from prior to that announcement?
Thomas J. Hirsch
No that's a new authorization, there's nothing remaining on the previous one. So that's one we just did here in July.
Patrick M. Burton
Okay. And with the strong free cash flow year-to-date in the sales proceed, I guess, I will just ask is A the timing and B how you came up with the $10 million share number, because it seems to me you could presumably have done 15 or something like that million shares?
Thanks.
Thomas J. Hirsch
Thanks Pat, and I think from my perspective is that, we have done $10 million share authorization; we're going to continue to allocate our capital effectively for our shareholders. We have shown that before in the past as far as our repurchases go, we're going to balance that obviously with our internal investments, acquisition opportunities and obviously the debt repayment that we have to do to get to that 2.5 times leverage by the end of '09 but we do have good flexibility right now, with our strong free cash flow and we will allocate that capital appropriately.
Patrick M. Burton
I guess one last quick. How much money do you anticipate coming in the last piece of shareholders services is sold?
Thomas J. Hirsch
That is not going to be that significant, the more significant piece came in already, but that there will be around in a range of 100 or somewhere in that range.
Patrick M. Burton
And the timing of the buybacks just pro rata over the...
Thomas J. Hirsch
Yes, we'll continue to buyback over the next couple of quarters.
Patrick M. Burton
Couple of quarters. Okay, thank you.
Jeffery W. Yabuki
Go ahead Stacey, sorry.
Operator
Thank you. I'd like to turn the call back to Mr.
Yabuki for closing comments.
Jeffery W. Yabuki
I guess that this hour I and everybody a little bit anxious. Thanks everyone for joining us into our call and a little bit longer than we typically do.
But if you have further questions please don't hesitate to contact our Investor Relations team and as always thanks for your support.