Fuel Tech, Inc. Q3 2008 Earnings Call Transcript

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2008-11-10 11:57:21.0

Tags: Call Transcript, Unit, Status, Earnings, Seeking Alpha, Call Transcript, Unit, Status, Earnings, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question will come from the line of John Quealy with Canaccord Adams. Please proceed.

John Quealy - Canaccord Adams

Hi. Good morning. First a bit of house keeping, and I apologize if you said this, in terms of the detailed guidance, the $79 million to $81 million, did you break out APC versus FUEL CHEM?

John Norris

No, we have not provided that level of detail, John.

John Quealy - Canaccord Adams

John, I think you mentioned something like $37.5 million per FUEL CHEM when you were going through the reconciliation. I would assume that's a decent number to use on a run rate basis now?

John Norris

Run rate right now basis, that's exactly right. For a full year, like in '08, some of those units that are in commercial status now became in commercial status during this year. So we weren't suggesting that that will be like this year's number, because some of those units didn't have a full year run rate, but for those units in commercial status, that provides a base for going forward and then new units, as they roll into commercial status, can be added to that. We were trying to just clean up that sheet, so that you guys could have a better basis for what to use, as you run your models.

John Quealy - Canaccord Adams

With regard to the FUEL CHEM spending initiative, can you comment, as much as you can, what exactly you're doing to tweak the process there, or what you need in international markets to invest near-term? Then, also, any quantification of that number in the next couple of quarters?

John Norris

John, I lost the train of thought there for just a second, as I was trying to shape my answer.

John Quealy - Canaccord Adams

Sure. First part, what exactly are we doing, as much as you can tell us, about the FUEL CHEM initiative overseas that requires some extra expense there? Then secondly, can you quantify the related expense over the next couple of quarters?

John Norris

Got you. Most of that is going to be done this quarter, in the fourth quarter. It's not going to be followed on. The nature of those one-time expenses, as an example, the China project, the demo project that we've been doing up until now, the amount that the customer paid us on that one wasn't going to fully ever cover our costs on that. We knew that was always an investment, and so, we'll be seeing the rest of those costs come in this fourth quarter.

 

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