ATC Technology Q4 2008 Earnings Call Transcript

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2009-02-11 13:07:09.0

Tags: TomTom, Contraction, Call Transcript, AT&T Corp., Earnings, Supply Chain, Operational Accounting, Business Operations, Finance, Seeking Alpha, Aftermarket Technology Corp.

Question-and-Answer Session

Operator

(Operator Instructions). And we'll take our first question from Tom Osborne at CJS Securities.

Tom Osborne - CJS Securities

Hi, good morning. And congratulations on good year.

Todd Peters

Thank you, Tom.

Tom Osborne - CJS Securities

My first question relates to your demand in Logistics. Can you provide any detail on what is related to kind of new purchases versus repair or replacement?

Todd Peters

Yes. Thanks for the question. Generally, we don't give out its detail metrics to drive it's customer confidential by line of service. But what I can tell you is paralyzing that you're reading is, our number customer in that segment is AT&T,

AT&T diluted on that market while there has been some recourse of our growth is slowing, they still do expect growth in 2009 over 2008. And I think what the new business had, we've launched with... in 2008 we're well positioned in 2009. It had a big year.

Tom Osborne - CJS Securities

Could you provide any kind of estimate broadly for the entire segment?

Todd Peters

Well, for the entire segment what we said is, at the low end of our guidance range there is an embedded contraction about $20 million in revenues. And that's kind of our... as I said in my comments of bare case. And moving up the scale from that the high-end of our guidance in terms of revenue is a more modest reduction in kind of net level contraction, and the impact of new business wins that we went and launch in 2009.

Tom Osborne - CJS Securities

Okay. And then in the Drivetrain guidance $10 million to $11 million of EBIT, you're currently around breakeven. I know you had $6 million point of savings, where does the extra $4 million or $5 million potentially come from?

Todd Peters

Well, on an adjusted basis, we ended the year with a $7.5 million of segment profit and so, what you'll see is the impact to some of the actions we took earlier in '08, coming into '09 and then impact of the additional actions we'll take in '09.

Tom Osborne - CJS Securities

Okay. And then, lastly you mentioned in the press release you had renewed your AT&T mobile and TomTom contracts?

Todd Peters

Yes, we did --

Tom Osborne - CJS Securities

And that was specifically and when are they renewed until?

Todd Peters

Yes, earlier in the year and the first quarter into this of the year (ph) we announced that we had renewed our contract with AT&T and the reverse side next through the end of 2010 and in mid-year we renewed our contract with T-Mobile and extended the amount of sale, there is a three year renewal. And then, the TomTom we extended in connection during some additional services for them.

 
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    nsradif

    02/17/09 | Report as spam

    RE: ATC Technology Q4 2008 Earnings Call Transcript

    Hi Iam a business student, for IS/IT module we have been asked to search a CRM system for a commercial non IT company and find what technologies they use and their leadership decisions in terms of IS/IT development in the company. I contacted several companies but unfortunatly I did not get any reply

    Any one here can help

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    Nagham

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