Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steve Sanders - Stephens Incorporated.
Trey Grooms - Stephens Inc
First, if we could start with revised guidance. You mentioned the UK MoD and a couple of other things in the Coms business. Besides from that, you talked a little bit about what’s changed from your perspective given the new range and if you could quantify the downside between Coms and the backup power market?
John Kavazanjian
The real issue is in comps. MRAP M-ATVs are starting to be produced, we actually know that because in this phase of the program, we’re going to be shipping and selling the cables directly to the equipment manufacturer so that they are ready for installation of the rest of the system. We already have our cable orders. The problem is that we supply the system part through primes and we don’t have that yet.
It’s going to happen, but we don’t want to get pushed. Last year and the year before when we’re supplying this program, we were into this supply issues with our supply chain of turning them on real fast trying to ramp them up real fast.
One of the reasons why we have a substantial amount of inventory ready for this program, because we really wanted to keep our supply chain going. We didn’t want to start them on this start stop. We’re a little frustrated by how long it’s taking, but it’s going to happen.
We just don’t know how we’re going to get crunched at the end of the year and we don’t want to get in those situations like we got into at the end of 2007, when at the end of the year, we had a substantial amount of products waiting for one part which didn’t show up.
It caused us to move revenue from that year, December end to the January quarter. So, we don’t want that to happen again. It’s a reason for the large range and frankly it’s a reason for us dropping our guidance. It’s not that, we don’t expect somebody is going to demand delivery of these things. But, we are in August right now and we want to make sure that when we do this, we do it efficiently, in the right way and that we don’t try to kill ourselves to make some artificial number, but we try to kill ourselves to help to do what the customer wants.
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