Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Our first question is coming from the line of Chuck Murphy of Sidoti & Company. Please go ahead for your question sir.
Charles Murphy - Sidoti & Company, LLC
Good morning, guys.
Michael Smiley
Good morning.
Anders Gustafsson
Good morning.
Charles Murphy - Sidoti & Company, LLC
Just wanted to touch on what you were saying at the end there. Mike, you said OpEx should be 76 to 79 million?
Michael Smiley
Yes.
Charles Murphy - Sidoti & Company, LLC
And can you just give us a breakout for your sales guidance for the first quarter between SPG and ESG?
Michael Smiley
Sure. We have... for SPG, we said 175 to basically $188 million and ESG is probably between 20 and $22 million.
Charles Murphy - Sidoti & Company, LLC
Okay, great. Thank you.
Michael Smiley
Yup.
Anders Gustafsson
Thank you.
Operator
Our next question is coming from line of Paul Coster of JPMorgan. Please go ahead with your question.
Paul Coster - JPMorgan Securities, Inc.
Thank you. Good morning. You said that the booking were strong in the Enterprise Solutions Group. Can you give us some kind of breakdown of the backlog whether it by geography or by industry vertical?
Anders Gustafsson
We had a good bookings performance in Q4. We had orders from a number of new customers ranging from people in China, Manila, Pakistan, Middle East, particularly for the aviation business, and Africa along with U.S. and Europe. Our backlog at this stage is commensurate with what we saw going into 2008 from a planned perspective.
Paul Coster - JPMorgan Securities, Inc.
And, so just on that the industry verticals?
Anders Gustafsson
I'm sorry. One more time?
Paul Coster - JPMorgan Securities, Inc.
What industry verticals are for yielding that strong backlog for you in the ESG?
Anders Gustafsson
So, aviation is one that has done very well in Q4 for us as a specific growth market. Maritime is still our largest significant market, and also had good bookings in the fourth quarter.
Paul Coster - JPMorgan Securities, Inc.
Okay. And my last question is: as the year progresses and you get closer to the outsourcing, how should we think about inventory and gross margins as you go through the transition at year-end?
Anders Gustafsson
We've done a lot of transition so far, but we still have very significant amount to do in 2009. And so what happens is you'll end up with two lines; one in the U.S and then one at Jabil running at the same time, and then you shutdown the U.S. line. So, there will a build up of inventory under raw material side as we transition the inventory from the U.S over to China.
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