ManTech International Corp. Q2 2008 Earnings Call Transcript

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2008-07-30 17:40:25.0

Tags: ManTech International Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question will come from Michael Lewis with BB&T Capital Markets.

Michael Lewis - BB&T Capital Markets

Hi nice quarter. And Bob or George, I was wondering if we could talk about Countermine for a just one second here. Should we assume going forward into say 2009, and I know the contract hasn't been awarded yet, but just for modeling purposes, should we assume almost like a lockstep increase equivalent to say the Q3 revenue guidance of $85 million in the quarter going out into 2009? In other words, should our expectation be between, say, $330 million to $350 million of revenue of Countermine next year?

Bob Coleman

Yeah, Mike, given the, again, it's a requirements driven contract, but I think it's safe to assume those levels of burn on the contract.

Michael Lewis - BB&T Capital Markets

And just remind me, Bob, are you applying some of these services in Afghanistan as well?

Bob Coleman

Yes, absolutely.

Michael Lewis - BB&T Capital Markets

Okay. And if I could just shift gears real quickly on CNTPO, have you been seeing any activity on this contract, and if so, has this been accelerating at all due to the searching activities that we are witnessing right now in Afghanistan?

Bob Coleman

I assume your talking about our DNDO effort.

Michael Lewis - BB&T Capital Markets

The counter narc work?

Bob Coleman

No, we have not seen any increase in demand on that program. It's been steady state.

Michael Willis - BB&T Capital Markets

Okay. Thank you very much.

Operator

Next question is from Joseph Vafi with Jeffries & Company.

Joseph Vafi - Jeffries & Company

Hi, guys, good quarter here.

Joe Cormier

Thanks, Joe.

Joseph Vafi - Jeffries & Company

Just back on the Countermine contract. Historically, we have been at run rates that included a lot of ODCs on Countermine, and just listening to Mike's question here a second ago, it sounds like given the run rates are going to continue on this contract at current levels.

Are we just assuming that the army is still kind of staffing up on spares and the like on the contract is that's what is going to be driving the high levels of revenue moving forward?

Bob Coleman

Yeah, it's a combination. It's primarily driven by the ODCs. But there is an increase in DL as well.

Kevin Phillips

Joe it's Kevin, There continue to be an increasing number of vehicles being fielded and supported and that's driving it's not a static number.

 

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