Question-and-Answer Session
Operator
(Operator's instruction) Your first question comes from Brandon Ferro - KeyBanc Capital Market.
Brandon Ferro - KeyBanc Capital Market
Dan, can you just tell what your revenue growth guidance for 2008? Can you give me a sense of what that is actually based on? Is that based on CSM forecast or purely automaker schedules? What should I look for as being the base assumption if we get incremental production cuts?
Dan Coker
It is primarily based upon industry data that we receive not only the CSM data but also the release data from the current customers, the P&L data. We get information from other sources as well but it is basically a kind of homogenization of all the information available but we do use the CSM data for the projections for production beyond what we have in terms of actual product releases as well as data from automotive news and J.D. Power and other people as well.
Bud Marx
But it is fair to say we do not just simply write down the forecast from the automotive companies especially in a circumstance like this because we know it is important. We step back and try to really rely on the let us say the most knowledgeable and most recent, because the situation has been changing sources in developing this guidance.
Brandon Ferro - KeyBanc Capital Market
Okay, gross margins and ASPs, can you just refresh for me and help me understand the mechanics of the mix shift? The sourcing decisions, I think Ford actually sources the ECU whereas other automaker customers give that responsibility to you? Can you help me understand what actually impacts growth margins from a mix shift standpoint?
Dan Coker
Well, there are a lot of complexities that are involved in that. It is really, it is pretty much what you have just described. Each of the OEMs allows us to participate in the supply and support of some of the ancillary equipment as well as our basic core components. Some of those other things we actually have different margin rates on so there is a shift of margins as our business mix is from quarter to quarter. I do not want to get into too much detail but that is essentially we do see a swing of bottom line margins as we get higher concentrations of business from one group of customers to the other.
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