T-3 Energy Services, Inc., Q4 2008 Earnings Call Transcript

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2009-03-02 15:46:11.0

Tags: Soviet Union, Middle East, Call Transcript, Earnings, Mexico, T-3 Energy Services Inc., Team Management, Routers & Switches, Management, Networking, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions) We will go first to Gerry Collin with Raymond James.

Collin Gerry - Raymond James

Hi guys it is Collin Gerry but close enough. I guess, Gus you gave us some pretty interesting numbers there on the what we are seeing right now and year-to-date in terms of quote backlog and order backlog and it sounds like really on a router base things are honing up pretty well due to some of the international expansion you have had, I was just wondering if you can maybe go into a little bit more discussion on what's driving that in particular areas and how do your capacity expansion development with the [Azlon] facility. How do those relate to growing that business and kind of capitalizing on what seems to be a pretty strong store there?

Gus Halas

Well, let me go through a couple of items and I will address them sort of backwards from how you asked. In terms of where most of our opportunities are coming from, ironically they are coming from the two locations where we do have the joint ventures which is primarily Mexico and the Middle East. There are some opportunities in the former Soviet Union and disbursed all around the world but it has been fairly positive.

However, I do not want to, I think Gerry you know me by now, I do not want paint such an optimistic picture that we sort of take our eyes off what's going on in the market. And one of the things that we have seen is that while our quote backlog is going up it is not a long term view from our customer standpoint.

And what I am saying by that is while they have what appears to be excellent insight in terms of what's happening in next three to six months in their business.

Traditionally, they were talking in the nine to twelve months and a much fair view of what was going on and we are not getting all that information so obviously you know that this management team is very conservative and so we do not want to paint a picture that's so rosy that we loose sight of some of those issues. And we have general concerns as always.

But to answer your question directly it is the two biggest areas are Mexico and Middle East and former Soviet Union for the most part and Southern Europe, but that's where we are getting our opportunities right now.

 

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