Michael Burdiek
Up from Q3? Probably up in the 40% to 50% range as compared to where we were in Q3.
Tim Quillin,Stephens, Inc.
Okay. That’s helpful, thank you. And then how much should we think about the heavy equipment pipeline right now? So you have a great reference customer that’s ramping up. I am sure you are talking to all the other heavy equipment manufacturers. I think it’s a lengthy sales cycle, but where are you in that process?
Michael Burdiek
We are in the lengthy sales cycle. We have multiple business development initiatives in play with various heavy equipment and heavy equipment sub-niche players around the world. We’ve got a number of pilots underway and we even have one project that’s hopefully going to launch here over the next quarter or two that involves a construction equipment sub-niche where we are going to be providing more than just a hardware device. We are actually going to be providing sort of a bundled platform solution integrated with their proprietary construction equipment mobile monitoring app.
Tim Quillin,Stephens, Inc.
Right, very good.And then just lastly, you haven’t made an acquisition for a year at least I think with RSI. What are the types of acquisitions that you are evaluating right now in terms of sizes, in terms of services versus hardware where you have a nice $40 million in cash burning a hole in your pocket, what are you going to do about it?
Michael Burdiek
Well, you said it was burning a hole in my pocket. I didn’t say that. Yes, Garo (ph), we had some discussions with Garo. We were even thinking about directing him to some therapy because he’s quite unnerved by the fact that we haven’t done a deal in a year. But of course I am joking, it is the holidays. So we’ve talked pretty explicitly about some of our key acquisition criteria and they are pretty stringent.
One, vertical market alignment; obviously margin accretion which suggests probably something more along the lines of software and service as opposed to pure hardware, earnings accretion which is key, and of course ease of integration and that’s hard to quantify. It’smore of a qualitative key acquisition criteria but it’s really hard to satisfy those key and what we believe are fundamental criteria, and given some of the valuation expectations out there, often times more so in the private enterprises than in the public players, it’s really hard to achieve the earnings accretion which is really fundamental.
Tim Quillin,Stephens, Inc.
Right. Very good. Happy holidays to you.
Michael Burdiek
Thank you.
Operator
Thank you. Our next question comes from Rajesh Ghai from Macquarie Research.
Rajesh Ghai,Macquarie Research
Yes, thanks, good afternoon. I have a couple of questions on the enterprise wins that you had in the SaaS vertical. Are these new customers or where they existing hardware customers who decided to adopt your SaaS platform? Also what helped you win and against whom?
Michael Burdiek
Okay, as it relates to SaaS enterprise wins, one was an existing customer. However, we were only – we were one of two incumbents in that account and what happened in Q3 is we end up assuming all of the mobile resource management or mobile workforce management application subscriptions. So we took some business away from one of the other incumbents. Andthe other case is a brand new customer. Not brand, brand new because we have done some trials and some pilots with the automotive OEM in the past, but this is, as a program, this is essentially brand new project and a brand new win.
