Teledyne Technologies Q1 2009 Earnings Call Transcript

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2009-04-22 12:17:14.0

Tags: Program, Call Transcript, Earnings, Research & Development, Mergers & Acquisitions, Business Operations, Investment, Finance, Seeking Alpha, Teledyne Technologies Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). The first one is coming from the line of Michael Lewis. He is with BB&T Capital Markets. Please go ahead, your line is open.

Michael Lewis - BB&T Capital Markets

Thank you very much. Good morning, Robert and Dale. Two questions, first question here is that I noticed this morning that CCOMM put out and word intention notice that's going to a would you guys another 7.5 million for more R&D on the Phase III of the Adaptive Focal Plane Array program that you've been working on.

Now this has been an ongoing program. I think you're doing it over at the Teledyne -- Rockwell pickup (ph) acquisition. This has been ongoing for sometime now. I'd like to just get an update on your progression of this product and also what do you think the total potential value will be on this program if you were to enter into a full rate production on FTAs within, say the next 24-36 months.

Robert Mehrabian

Thank you, Michael. We have been awarded the take three (ph) options on the Adaptive Focal Plane Array program. As you know, AFPA is combined arrays of MEMS, these are micro-electro-mechanical systems and tunable optical filters with that infrared focal planes for detecting target by sensing their special signature.

Right now, we had -- we'll design and fabricate and deliver some prototype cameras to the army. Full March end (ph) technology probably will go to from our DARPA it will go to MVSC (ph) and in the army of course. Full rate production still I think is a little in the future. We need to do a little more work, but I think we are optimistic. So, I can't directly answer your question, in terms of what this would mean to us in the long-term, but we are very optimistic about the progress we are making.

Michael Lewis - BB&T Capital Markets

Okay. That's fair, but all-in-all it is a significant program if it were to enter full rate production, is that correct?

Robert Mehrabian

Yes. And it's really into the forefront of the technology in that domain.

Michael Lewis - BB&T Capital Markets

Okay. And then I'll shift gears here real fast. With regard to margins, Engineered Systems did come in about 100 basis points above what I was looking for. Now this was offset by the zero margin that we saw in Energy & Power Systems. Can you walk us through the moving parts in a little more detail on those two segments? And also what's your expectation for the full year in each one of those areas that'd be very helpful?

 

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