Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Mark McMahon - Raymond James & Associates.
Mark McMahon - Raymond James & Associates
I was wondering if you might be able to expand a little bit about what you were talking about for next year. You talked about the sustainment and I thought you had said something in the neighborhood of $250 million in potential sustainment orders in the second half of 2009. Would you be able to give a little bit more color on what the total size of the market would be going forward if you do not get a reprisal on this Army buy?
Larry R. Ellis
What we’re looking at is on the DLA side the [DSCP] who came out with a market survey that was about half the size of the main buy. That was new information to us and in fact to the industry a new process. What it has allowed us to do now is to do a little bit of planning which we have not been able to do in the past. So that is very helpful in terms of where we’re going.
As I indicated also on the international side, we see an uptick there. We’re continuing to work that very hard. I also indicated that we should see some improvement in sales in Iraq and Afghanistan and to tie to as we stand down and that’s anticipated that they will stand up their forces. Again vests are required. In terms of the total number, I don’t have it here. I’ll ask Pat if he has a number. I’m not sure but I don’t have a number I can give you. All I would tell you is I see an uptick for next year.
Mark McMahon - Raymond James & Associates
In essence you do anticipate to see growth going forward in 2009? I know in 2008 we were expecting to see this larger order and maybe some real ramp-ups taking place. I’m just trying to get a sense of what to look forward to in the coming quarters if this reprisal doesn’t go your way with the GAO.
Larry R. Ellis
Another thing I would tell you is if you go back and look at the appropriations, there’s money appropriated; a significant amount of money. Much of that has been pushed toward the hard body armor but there’s a substantial amount of money to be obligated this fiscal year and we expect to be competitive. What we’ve been talking about here is new fielding versus sustainment. In the main buy that was new fielding. By the way, we still feel very positive about the outcome on our protest.
- To read the full transcript on Seeking Alpha, click here »




