Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Brian Swift from Security Research. You may proceed.
Brian Swift – Security Research
Can you give us a little idea about how your pipeline of business opportunities looks in transition from say the fourth quarter into the first quarter or whatever kind of historical flavor you can give us to kind of point us into what our expectations ought to be for the current quarter? I know you said you’re going to put out full year guidance out sometime next month but what can you tell us about the activity of your business by segment and where you are going in this quarter?
Thomas A. Szabo
Okay. Rick manages the funnel so I think he’s a lot closer to it so I’ll let Rick answer.
Richard M. Ono
Yeah. The funnel actually with all of the marketing activity that we’ve had all of the recognition that we’ve gotten for instance winning the Frost & Sullivan award and all the stuff we’ve got in our funnel had actually exploded over the last two quarters. We expect Q1 to exceed Q4. Things are looking very good for the next – in our funnel, like I said it’s the largest funnel that we’ve ever had and it seems to be growing almost daily.
Thomas A. Szabo
Typically, for this type of equipment Q1 is a downturn quarter across the industry. We will not see by our estimate a downturn at all in the first quarter.
Richard M. Ono
And we also expect the funnel as it stands today doesn’t really have anything representing our new efforts in Europe and some of the OEM opportunities that we’re pursuing. So, we’re pretty happy with the way things are looking right now.
Brian Swift – Security Research
Could you give us an idea – you mentioned on an example of a two four screen installation that was under $5,000 a month, can you give me what the OM costs are typically on the various things? In other words I think you have two screen, three screen, four screen type applications?
Richard M. Ono
Sure. We start with our executive system which has a list price of about $40,000. The example that Tom gave earlier was a customer that is leasing the system so their lease price per system and leasing of course is going to vary based on prevailing interest rates and so on but I believe that they’re leasing for approximately $1,300 thereabouts a month per system. The network connection that Tom references from kind of a state of the art, actually a run of the mill Internet provider called XO and they’re paying for 10 megabytes of bandwidth they’re paying about $1,000 a month. So that’s where that $5,000 number comes from thereabouts. For that particular customer they breakeven on one or two trips from coast-to-coast and then everything else on top of that is gravy.
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