Question-and-Answer Session
Operator
Thank you. (Operator instructions) And we will take our first question from Steve Sanders with Stephens Inc.
Trey Grooms – Stephens Inc.
This is Trey for Steve. Good morning.
John Kavazanjian
Good morning, Trey.
Trey Grooms – Stephens Inc.
I was hoping you could help us connect the dots on the revised 230 million in revenue guidance coming off the $40 million quarter. How does that growth come in in the various segments and what visibility do you have on that?
John Kavazanjian
It is pretty straightforward, Trey. We expected this year to be around $60 million in SATCOM systems, and that came out about $15 million a quarter and it didn't happen. It didn't happen because of delays, it’s still budgeted plan, we have – it's a little frustrating in terms of control over it, because we do this through a prime, and the prime has got to get the contract award in place of the government before we just start shipping the product. So we've had a couple of false starts here. We did not want to get our supply lines messed up. We had problems last year and we got some relatively large orders, and it took us a good six months to get supply lines in shape. So we have kind of absorbed that – the shock to our supply lines by continuing to supply.
But I think it's pretty straightforward, as we contribute about 15 million of that, we were down a couple of million dollars in delays because the slow startup of the auto industry. And then we had a couple of timing issues in terms of lot acceptance on shipments. 9-Volt was a little lower maybe $0.5 million lower, so that is the best I can bridge it. I will also say that we were – in terms of the UK MoD program, we were probably a quarter later than we were told that was going to happen also. That solicitation was done in the fall. It was supposed to have awarded in January. So that was a good three or four months behind.
Trey Grooms – Stephens Inc.
Okay. And then, I guess assuming that sales are going to tend up in some steady level for the remainder of the year, could you talk about how you see revenue margins in 2Q versus 1Q or second-half versus first-half?
Bob Fishback
I think last year, we went to annual revenue guidance clearly for this reason. If we get contract issues in place for the SATCOM systems depending on when they get in place and the ability of ourselves to get these things out QA'ed [ph] and shipped – because there are government QA requirements to any shipments. Same thing even in battery shipments. I mean one of the reasons we are down a little bit because we do lot acceptance and if the full lot is not ready to be tested by the government, then it spills over to next quarter. So we believe we will do at under $19 million over the next three quarters. It won't necessarily be total level, but our assumptions are its reasonable level and the fluctuations are going to be more from timing than anything.
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