Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from William R. Loomis - Stifel, Nicolaus & Co..
William R. Loomis - Stifel, Nicolaus & Co.
Looking at the margins, clearly they’re better than expected. You mentioned Oberon adding to margins even with the intangible amortization and also a shift to T&M. Is Oberon the shift to T&M or are there other programs that are also shifting in that direction?
Brian J. Clark
It’s both. As you know substantially all of Oberon’s work is T&M so that was a big part of the needle movement that happened in the quarter but also remember we’ve got the passport services contract, our largest contract converted from cost plus to T&M. That was actually our biggest mover year-over-year. And then we’ve just got a general shift in some of our other work and new contract awards are coming out that way. Those are going to be your two biggest pieces; passport and Oberon.
William E. Loomis
What was the revenue for Oberon in the current quarter?
Brian J. Clark
A little bit better than what we got it to before. We said about 22 to 23 and it came in just a little bit above that.
William E. Loomis
Are you giving the breakout for the USCIS and the passport? You already gave core production at 10% but can you give the breakout for the other two?
Brian J. Clark
Yes. Passport was 11% for the quarter and CIS we don’t break that out. That’s less than 10%.
Operator
Our next question comes from Edward S. Caso - Wachovia Securities.
Edward S. Caso - Wachovia Securities
You went really fast on the margin improvement. Was that operating margin improvement is now expected to do what?
Brian J. Clark
30 to 40 basis points over where we came in last year.
Edward S. Caso - Wachovia Securities
And that’s basically all better than expected shift in the mix or is there any different view on the amortization or the interest expense?
Brian J. Clark
It’s both. Interest expense obviously doesn’t come into play here but in terms of EBITDA a lot of it’s coming from the shift in contract mix and just better performance coming off of contracts overall as well as continuing to get better realization of efficiencies out of our G&A structure. On the operating margin side, the lift there is a result of that but also as I talked about last quarter I had put out some guidance or at least what we initially estimated in terms of what the amortization of intangibles was going to be for Oberon. Since that time we completed our independent valuation purchase study and those valuations came in a little bit lower so the amortization is less than we had anticipated originally.
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