Question-and-Answer Session
Operator
(Operator instructions). We will have our first question from Mike Lewis, BB&T Capital Markets.
Mike Lewis – BB&T Capital Markets
Good evening, nice quarter.
George Pedersen
Thank you.
Mike Lewis – BB&T Capital Markets
Bob or George, I was wondering can you help us quantify some of the relative sizes of the cyber RFI’s that we are starting to see come through from the customer, and then I have a followup.
Bob Coleman
Right, yes Mike. Again, with the money just getting approved and beginning to flow, we do not expect to see a lot of the RFI's. On the RFI’s now, we do not actually see the competitions occurring until Q2 at the earliest of 2009, but from our point of view, the back half of 2009, we just recently did win a small cyber – NCI cyber contract at DIA and that contract we believe is one of the first we have seen outside of our previous large award there.
Mike Lewis – BB&T Capital Markets
Okay that is helpful, and then if I could just shift over to your employee base over in Iraq and Afghanistan, once you start to see some of these employees rolling off out of the desert, what do you think – how is that going to impact the profitability of the firm? Are we going to see a benefit to profitability or is this somewhat higher margin type work that they are doing over there?
Kevin Phillips
Mike, I will speak generally to the contract and then to the rollout you speak of, I will provide comment, and then Bob or George can add to that. We have not seen any change in the mission requirements from our customers as we are seeing increased requirements in both Iraq and Afghanistan. At some point in the future, the material close may reduce that there is no margin and there is no fee on the material component. As a reminder, the RSC business we have may increase the amount of requirements if there is a reduction in forces that impacts our business out there, but we do not see any change in the requirements that are going to be reducing the staffing in the tier of operations and is result of the profitability as well, and I will hand that over to Bob.
Bob Coleman
Yes, as a matter of fact Mike, I think we see continued double-digit growth in that program. In 2009, we are seeing increased requirements, like Kevin said, in Afghanistan and the margin on the direct labor there is very strong, so even if and when the materials trail down, I still think the work will continue as the vehicles may be pulled back to Kuwait, may be come home, basically our relationship is very strong with the customer and where the money goes is – for these vehicles is where we will follow. Does that answer your question?
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