Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Michael Lewis – BB&T Capital Markets
Michael Lewis – BB&T Capital Markets
I was wondering would you be able to provide us with a breakout of the logistics component of the UAS sales in both FY08 and the fourth quarter.
Stephen Wright
We provide that breakout at the total company level, in Q4 products were 61%, services 21% and project R&D.
Michael Lewis – BB&T Capital Markets
Do you have it for the full year?
Stephen Wright
Full year, 57% for products, 30% for services and 13% for project R&D.
Michael Lewis – BB&T Capital Markets
And about the Raven B conversion, how many Raven A systems have you completed thus far and also what’s the total number of Raven A systems left for conversion at this time?
Timothy Conver
I don’t have the specific numbers off the top of my head, however I think the majority of the Army’s Raven A’s have now been converted to the Raven B configuration.
Stephen Wright
We don’t know exactly how many Raven A’s are left to be converted but our understanding is contractually there are about 170 Raven A systems that have yet to be converted. Those may be converted at the discretion of the Army or not, we don’t have any orders putting those into conversion mode.
Michael Lewis – BB&T Capital Markets
You put out the release on the $7 million Netherlands order, have you delivered any of this product to date?
Timothy Conver
No.
Operator
Your next question comes from the line of Timothy Quillin – Stephens, Inc.
Timothy Quillin – Stephens, Inc.
In terms of the production halt that you’re talking about on Raven and Wasp, how should we think about that in terms of the potential revenue impact in 1Q?
Timothy Conver
Well I think overall it’s positive. It’s a directed change funded by the customer and that has an overall positive effect on revenue. In Q1 we expect it will have other things equal, a negative effect because we’ll be deferring some production shipments while we cut in that change.
Stephen Wright
As Timothy mentioned, in cutting in that change we’ll defer revenue into the balance of the year. We probably don’t want to get into giving specific guidance by quarters and just stick with our annual guidance for all the reasons that we’ve discussed in the past but since we are talking about this, probably the way to think about it is this cut-in will—in Q1 will reduce our product revenues on the order that they would be running on the order of about two-thirds of the level that we were at in Q4.
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