National Medical Health Card Systems F2Q08 (Qtr End 12/31/07) Earnings Call Transcript

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2008-02-08 08:29:09.0

Tags: National Medical Health Card Systems Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of David Macdonald with Suntrust. Please proceed.

David Macdonald - Suntrust

Good morning, guys. A couple of questions. First of all, Stuart, just on the SG&A improvement, is this kind of -- can we think about just as kind of a normalized level on a go forward basis and any improvements kind of take it down from this level of moving forward?

Stuart Diamond

Dave, we're not giving a forward looking information but with saying that I think you can see we've kind of stabilized in the SG&A area of where the expenses are and we've been numerate with the severance items are and the consulting items -- consulting firm items are.

David Macdonald - Suntrust

Okay. Can you guys provide anything in terms of just new business or sales or, how the sales process is going or just even if its kind of anecdotal comments, we think about new business and how you guys are doing, I mean you've obviously done a pretty good job renewing what you have, but what about new business coming on board?

Stuart Diamond

Dave, I think, you can kind of see from the sequential results that we've trying to stabilize in the gross profit area. And to that point, not really giving out forward looking guidance in terms of information, we're really not giving out information in terms of the pipeline or sales in those areas. But we feel like we're stabilize in terms of the gross profit, the script count and the lives.

David Macdonald - Suntrust

Okay. Can you give an update on where we are on the system side, I know you are working to try and move onto one platform. In the last update we had, I believe you're about 50% through that, is that continuing to move forward? Where are we are on IT systems?

Tom Erickson

David, it's Tom, I don't --we were quite a 50% last time, but I can say by accounting year in '08 we think we are going to be 75% complete.

David Macdonald - Suntrust

Okay. And then just couple of questions on the Specialty, Stuart I think I missed the number did you give out gross profit and the revenue number for Specialty this quarter or growth rate?

Stuart Diamond

No, I didn’t, but I can give it to you.

David Macdonald - Suntrust

 

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