Question-and-Answer Session
Operator
Thank you. (Operator instructions) And we'll go first with Joseph Vafi with Jefferies & Co.
Joseph Vafi – Jefferies & Co.
Good afternoon. I just maybe, we can just kind of talk about the visibility on the ODCs obviously, they are pretty low margin, but here we are, about a month through the quarter, and I know you were talking about some delays. Have you have actually seen some of that ODC flow re-emerge from the Army at this point?
Kevin Phillips
Yes, Kevin, I will provide the response in two parts. First is on the in theater operations for Counter Mine. As we had mentioned we had expected flow of ODCs to come through in the quarter that were delayed coming out of Q4 of '08. Those orders where placed and they were just later deferral of receipt of those goods than anticipated. So, in that arena, we are seeing a slight pick up. Having said that, the various customers we support in theatre are planning for and addressing repositioning of some of the systems that they have, and we felt it cautious to reduce the overall expected flow of ODCs until we have better visibility on when and how those systems will be positioned.
Having said that, the number of systems we support is growing. The number of personnel supporting those systems is growing, and we expect to continue to see long-term growth in the acquisition and purchases in those systems. On the other programs, RSC and programs of lesser size, basically there was a disruption within the customer sets or procurements of the evaluated buys; we are seeing some of the requirements pick back up. Having said that though, we are being cautious about the timing of those plans, and the receipt of those materials more weighted in the second half of the year, but we are seeing a greater level of activity within our customers to re-procure or begin the purchasing process for some of those ODCs.
Joseph Vafi – Jefferies & Co.
Okay. That’s helpful. So, just need to me clear, it sounds like the number of units or vehicles that you are supporting in Iraq and Afghanistan continues to climb. It is just right now a function just reviewing some of the programs and then looking at the spare inventories is that the way to look at it?
Kevin Phillips
Yes, the spares inventories and the timing of positioning or repositioning of some of those systems within the two theaters of operation.
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