Question-and-Answer Session
Operator
(Operators instructions) Your first question comes from the line of Adam Mizel with Aquifer Capital. Please state your question.
Adam Mizel – Aquifer Capital
Good morning, guys. How are you?
Ed Fred
How are you, Adam?
Vince Palazzolo
Hi, Adam.
Adam Mizel – Aquifer Capital
Good, thanks. As we look out over the next few quarters in 18 months for this company and as this new contract that you won roll in, are we going to see a consistent and steady increase in revenues and earnings, or is there lumpiness that's going to be associated with different timing of different orders and investments and expenses?
Ed Fred
There could be, I don't want to call it lumpiness. It won't be dramatic, but you can have a quarter that is perhaps lower than the quarter before it, but doesn't signify that the company is going down in the wrong direction or anything else. There will be quarters where as you're gearing up for particular effort where the revenue will be very extreme compared to the quarter before it, but the quarter following that might drop off a little bit. I don't think you want to view CPI necessarily on a quarterly basis. That's why we project on an annual basis. That's another reason we've never given quarterly guidance. It's not reflective of the 12 months worth of CPI's revenue streams. So, while it may shift a little higher, a little lower in given quarters, I don't think I'd call it lumpy per se.
Adam Mizel – Aquifer Capital
Okay. So then a specific one, it always happens when you're into the fourth quarter of the year, which is – should we then be reading into your statements today that the fourth quarter that we're in will be a revenue decrease from the third quarter?
Ed Fred
It might be slightly lower. It's also possible we will exceed $35 million by a little bit. Certainly, not newsworthy, not something we're going to go out and revise our projections for, but I wouldn't – if it's lower, it will be slightly lower.
Adam Mizel – Aquifer Capital
Got it.
Ed Fred
But again, the numbers we gave, the projections we gave were for the annualized basis. You could read into that quite obviously and do the math yourself. So even if revenue was down slightly, we'll be slightly more profitable because we do expect to hit the $2.6 million number.
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