Question-and-Answer Session
Operator
Thank you. (Operator Instructions)
Our first question comes from Howard Rubel of Jefferies.
Howard Rubel - Jefferies & Co.
Thank you very much. Just to return a little bit to your outlook. James, there's also some additional items that appear to have cost you in the quarter. One was satellite business and also deferred comp. R&D looks like it was fairly high. Could you elaborate a little bit on how you're thinking about those for the rest of the year, especially satellite problems you continue to suffer with?
James Bell
We do believe it's going to stabilize. The charge we took on satellites was the military satellite Wideband Gapfiller -- I think we talked to you about that before -- and we think that we’ve embedded in the EAC what it's going to take now to go ahead and perform that program under the current booking position.
On the deferred comp, clearly we've been impacted as our stock has appreciated pretty significantly over the quarter. We think that will sort of normalize, although we're hoping not too much because our stock price going up is a good thing for us.
In the R&D piece, Howard, as you know, last year we did have some supplier cost sharing payments that offset some of the R&D expenses. We didn't have any reported in the first quarter but we do expect to get some, although they’ll be less than what we received last year, but I think that will normalize what you're seeing on the spending rate going forward for R&D.
Howard Rubel - Jefferies & Co.
Thank you.
Operator
Thank you. Our next question comes from Cai von Rumohr, of Cowen & Co.
Cai von Rumohr - Cowen & Co.
Yes, good quarter.
James Bell
Thank you, Cai.
Cai von Rumohr - Cowen & Co.
How can you do 10% commercial margin in the first quarter when R&D appears to be at a peak level, when your volume is going up, your mix should be getting better, and your commercial margin for the year is not 10% or better?
James Bell
Well, clearly, Cai, we had a good quarter with good productivity -- clearly that came through, but it also was impacted by some of the timing of some of our period expenses that we expect will hit later in the year. Clearly what BCA has done both with ramping up the production?
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