Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Chris Donaghey with Suntrust Robinson Humphrey.
Chris Donaghey – Suntrust Robinson Humphrey
You have kind of given us some good data points on what to expect on the services side of the revenue, service and support for fiscal 2008. As we think about 2009 should we use a similar type of run rate for the services business in 2009? Obviously the fleet will be a little bit larger by then but [inaudible] to quantify what we should expect in 2009 for services revenue.
Michael Moody
Certainly taking the whole area of sustained revenue of service and spares such as ours has been a significant contributor in 2009, as it will be in 2008. Obviously some of that is going to depend on how actively used our vehicles are, but certainly we expect that it’s going to be a very significant revenue strength for us next year.
Chris Donaghey – Suntrust Robinson Humphrey
Okay. And as we think about that $250 million, in terms of visibility, that seems to be the highest visibility revenue right now. What should we be thinking about in terms of the margins on that $250 million in revenue?
Michael Moody
Where is the $250 million, Chris? I’m just not quite sure.
Chris Donaghey – Suntrust Robinson Humphrey
Oh, I’m just using the $150 million in services revenue and $100 million in Buffalo revenue. Just the highest visibility portion of the revenue right now.
Michael Moody
I’m sorry, I was focused on the number. What was the question again?
Chris Donaghey – Suntrust Robinson Humphrey
What kind of margin expectation should we have around that, just the Buffalo and the services part of the revenue?
Michael Moody
I’m not sure I can really quote on that at the moment. It’s pretty difficult for me to give forward-looking statements when we haven’t put our historical financials out. I think I’m going to be in a much better position once we’ve got our tag filed to start talking about those things.
Chris Donaghey – Suntrust Robinson Humphrey
That’s fine. But can you maybe bracket for us what your expectations are based on either the remanufacture of the existing fleet or other foreign military sales? Can you put a range around what the Cougar production numbers could look like in 2009 and/or the revenue associated with that? Now that you’re already kind of building the production book for Cougar in 2009 with the British order?
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