Kendle International Inc. Q4 2008 Earnings Call Transcript

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2009-02-25 14:10:34.0

Tags: Call Transcript, Income, Wachovia Corp., Earnings, Jefferies & Co., Programming, Kendle International Inc., Taxes, Data Management, Personal Finance, Free Trade, Development Tools, Operational Accounting, Financial Planning, Finance, Software Development, Software/Web Development, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Greg Bolan - Wachovia Capital.

[Unidentified Analyst] - Wachovia Capital

This is [Eric Hebert] on behalf of Greg Bolan. First question here is on the guidance. Do you plan and recognizing the tax liability of $5.8 million rateably throughout the year or all in one quarter? And then excluding this additional income tax, what do you believe your effective tax rate would be?

Buzz Brenkert

This will be reflected throughout the year in the projected tax rate for the full year. So, I am not sure will be rateable, but it will be proportional, if you will. Sorry, Eric. Without that, I would say it’s probably comparable to our rate this year, which is about 36% for the full year.

Unidentified Analyst - Wachovia Capital

Okay, perfect. Moving on, what is the net book-to-bill that you have assumed in your 2009 revenue guidance? And does it include that significant cancellation Candace described in her remarks?

Buzz Brenkert

The net book-to-bill we have assumed is in range of 1.2 to 1.3. And I am sorry, Eric what was the second part of the question?

Candace Kendle

Yes, it does include that cancellation.

Buzz Brenkert

Yes.

Unidentified Analyst - Wachovia Capital

It does, okay. And then last question here, can you just break down the $1.2 million expense in the other income line. We were kind of expecting a gain in this line. I know last quarter you broke it down into the impact from the inter-company notes cross-currency hedges and FX transaction gains. Is it possible for you to do that for us today?

Buzz Brenkert

Yes, I have got a schedule. Let me find it and come back to you, Eric, later on in the Q&A session.

Operator

Your next question comes from Dave Windley - Jefferies & Co.

Dave Windley - Jefferies & Co

Candace, on the programming issue, the rework events, I was hoping we could understand, I am interpreting that as data management, programming issue . Is that correct?

Candace Kendle

Not specifically, not data management, but it is a single event. There are no customer, no patients at risk and there are no long-term damages to the customer, if that is what you are getting at. But it is a one-time event that is being resolved amicably with the customer

Dave Windley - Jefferies & Co

Okay, I was just trying to gain an understanding of those things as well, but I guess what kind of programming are we talking about? I presume computer programming?

 

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