Callidus Software provides Enterprise Incentive Management software that enables large businesses to plan model and manage pay-for-performance compensation programs designed to align employee sales and channel tactics with targeted business objectives. Callidus Software Inc. has a market cap of $89.3 million; its shares were traded at around $2.98 with and P/S ratio of 0.9. Highlight of Business Operations: During our first quarter earnings call, we reported that as of that date our cumulative ACV was $27.4 million, which included $1.9 million of new ACV, partially offset by $0.5 million of canceled ACV, since January 1, 2009. Of the new ACV, $0.8 million was booked during the first quarter and $1.1 million was booked between April 1 and April 30, 2009. Of the canceled ACV, $0.3 million was canceled during the first quarter and $0.2 million was canceled between April 1 and April 30, 2009. We are providing the foregoing details regarding the timing of new and canceled ACV because our cumulative ACV as of the earnings release date reflected changes to our ACV since our last reported results over a period of four months. Upon further consideration and to avoid confusion, we intend to disclose our cumulative ACV, as well as additions and cancellations, as of the balance sheet date for each reporting period, rather than as of the earnings release date as we had indicated in our first quarter earnings call.
During the quarter we continued to make progress on streamlining our cost model. These efforts led to a continued improvement in our services margin and further decreases to our operating costs. Services margin improved to 17% for the quarter. This compares to our fourth quarter 2008 services margin of 6% and the 2008 full year services margin of 10%. Operating expenses decreased both on a year on year and consecutive quarter basis. Operating expenses decreased by 10% in the first quarter of 2009 compared to the first quarter of 2008 and decreased by 16% in the first quarter of 2009 compared to the fourth quarter of 2008. These decreases reflect the cost saving actions taken during the past year and a half. We completed reductions in workforce and recorded charges of approximately $1.5 million in 2007, $1.6 million in 2008 and $0.2 million in the first quarter of 2009 in connection with severance and termination-related costs, most of which were severance-related cash expenditures. We realized cost savings during the first quarter of 2009 from the reductions in force, and we expect to realize additional savings in the remainder of 2009 related to these actions. The October 2008 cost savings program was substantially completed in the fourth quarter of 2008 and will be fully completed in the first half of 2009. As of March 31, 2009, accrued restructuring charges were $0.2 million.
On November 27, 2007, our Board of Directors authorized a one-year program for the repurchase of up to $10 million of our outstanding common stock. On October 21, 2008, our Board of Directors re-authorized the program for the repurchase of up to $5 million of our outstanding common stock, which represented the unused balance of the program initially approved in 2007. During 2008 under these repurchase programs we executed the repurchase of 1,994,000 shares for a total cost of approximately $8.0 million. During the three months ended March 31, 2009 under these repurchase programs we executed the repurchase of 248,000 shares for a total cost of approximately $0.7 million. The repurchased shares have been constructively retired for accounting purposes. During the three months ended March 31, 2009, our Board of Directors suspended the repurchase program.
License Revenues. License revenues decreased $1.0 million, or 25%, in the three months ended March 31, 2009 compared to the three months ended March 31, 2008. The decrease was attributable to the shift of our primary business focus from the sale of perpetual licenses for our products to the provision of our software as a service through our on-demand offering. The decrease also reflects a $0.4 million adverse effect due to currency exchange rate fluctuations. Our average license revenue per transaction for the first quarter of 2009 was $0.6 million compared to $0.7 million in the first quarter of 2008. We had one transaction in the first quarter of 2009 with a license value over $1.0 million, which was the same as the first quarter of 2008. We expect our license revenues to continue to fluctuate from quarter to quarter in the near term since we generally complete a relatively small number of transactions in a quarter and the revenue on those software license sales can vary widely. Over time we expect license revenues to comprise a smaller percentage of total revenues as we continue to shift our emphasis towards our on-demand business model.
Sales and Marketing. Sales and marketing expenses decreased $1.5 million, or 21%, for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. The decrease was primarily attributable to decreases in personnel costs of $0.8 million due to reductions in headcount and a decrease in commission payments resulting from decreased license sales. The decrease was also driven by a decrease in professional fees of $0.2 million, a decrease in travel costs of $0.1 million, a decrease in facilities and other expenses of $0.1 million and a decrease in stock-based compensation as discussed below. The reduction in commission expense is, in part, reflective of the shift our business focus to our on-demand offering and away from the license model. Commission expenses associated with on-demand arrangements are deferred and then amortized over the non-cancelable term of the contract as the related revenue is recognized; whereas commission expenses related to license sales are incurred in the period the transaction occurs.
Restructuring. Restructuring charges decreased $0.2 million, or 58%, for the three months ended March 31, 2009 compared to the three months ended March 31, 2008. We recorded restructuring charges of $0.2 million in the first quarter of 2009 and $0.4 million in the first quarter of 2008 in connection with severance and termination-related costs, most of which were severance-related cash expenditures. The October 2008 cost savings program was substantially completed in the fourth quarter of 2008 and will be fully completed in the first half of 2009. As of March 31, 2009 accrued restructuring charges were $0.2 million. We expect to incur restructuring charges of $0.2 million in the second quarter of 2009.
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