Question-and-Answer Session
Operator
Yes, sir. (Operator Instructions). Our first question is from Arnie Ursaner from CJS Securities.
Arnie Ursaner - CJS Securities
Good morning, starting with a number question can you give us the VPT revenue contribution in the quarter?
Victor Mendelson
For better reasons and as we spoke before the specific revenue numbers of VPT, we are not going to be disclosing. We previously indicated that it was the typical ETG acquisition, which we commented would be around $10 million to $30 million annual revenue.
If you take the midpoint there you are going to be in a range of a reasonable estimate and so you can see from that size it's not a significant individual contribution.
Arnie Ursaner - CJS Securities
Then the margin on VP T. similar or higher, lower than the other businesses within ETG?
Laurans Mendelson
It's within the overall range of what ETG's operating margins have been running, which you may recall typically run from a low of 25% to on a blended basis to 28% or something in that range.
Arnie Ursaner - CJS Securities
Then on Flight Support group if I add in the inventory write-down impact of $1 million it would add about 100 basis points to your 15.2% reported margin. I guess the question I have is you've been running 17%, 18% margin for awhile in Flight Support group, seems to be running at a lower level on a more consistent basis.
How should we think about that, not just in the upcoming quarter but perhaps as we think towards next year, how should we think about margin in Flight Support group?
Tom Irwin
On a near-term basis, you're right. It did reduce OI margins of the segment about 100 basis points. The near-term margins have been impacted historically in the fourth quarter by the lower volume which shrunk those operating margins as you're pointing out from 17%, 18% to the 15%, 16%.
I think as we look out in the intermediate term and long-term, we see the opportunity to restore those margins, but again, a lot has to do with the near-term volume of the Flight Support Group.
Eric Mendelson
Obviously when the spares volume falls and we continue to invest in new product development and continue our marketing and sails initiatives, we get hit badly in the margin area. So I would fully expect that when sales do recover that we will recover those margins.
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