NeuStar, Inc. Q2 2009 Earnings Call Transcript

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2009-07-30 18:47:22.0

Tags: Phone, Industry, Field, Clearinghouse, Call Transcript, IP, NeuStar Inc., Earnings, Telephone Number, Text Messaging/SMS/MMS, Telecom & Utilities, Network Technology, Strategy, Networking, Cellular Phones, Consumer Electronics, Personal Technology, Online Communications, Management, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And your first question comes from Will Power with Robert W. Baird.

Stephen Baker – Robert W. Baird

Hi, guys. This is Stephen Baker for Will Power. Just a couple of question, one I was wondering if you could give us an update on the NGM cost cutting process and just what things are looking like there. And then two, I was wondering if you could talk a little bit more about the data fields you added to the LNP clearinghouse and just what exactly those would be used for? Thanks.

Paul S. Lalljie

Thank you. On the NGM business segment we have commenced an alignment of cost with revenue starting in December of 2008 as we announced in an 8-K and in a press release that we provided at that point in time. We are confident that we will get to the EBITDA break-even number, EBITDA crossover that is during the fourth quarter of 2009. We are still in the process of aligning cost with revenue and also adding some efficiencies to the business processes that allow us to do more with less as we've made changes throughout the first and second quarter of the year.

Jeffrey E. Ganek

Okay. And let me respond to the question about IP fields in the clearinghouse LNP directory. The industry that is telecommunication service providers who are our customers talk together and agreed that they needed to have at least three data fields in the impact database each of those fields will have an IP value in it that is with any particular telephone number the first of the fields will be an IP address for voice traffic that's designed for the telephone number associated with that record, the second of the three IP fields is for SMS text messages directed to that telephone number. And the third IP field will be for MMS or Mobile Media Service, this is a best example or the photos that you take with a mobile phone and send to an another phone, that's an MMS driven service.

Those three fields have been specified by the industry have been contracted for, the industry is currently working with NeuStar to activate those fields in our clearinghouse and we expect commercial service up well before the end of the year, we do not expect large volume anytime soon, these fields represent a material technology innovation and change for the industry that will all take sometime, but the industry the network operators will be able to get NeuStar reliability and universal connectivity to all carriers for these three fields. Importantly, we believe this is an example of a foundation, we are laying today during tough economic times, foundation from which substantial faster growth will emerge in the future.

 

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