Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from [Bo MacKenzie – Global Hunter Securities].
[Bo MacKenzie – Global Hunter Securities]
I’m sort of surprised although pleasantly that you guys are seeing an uptick in new transmissions. I guess you’re referring to the 7500. Can you give us a little more of an update as to exactly what’s going on with the 7500s? And, what the selling point is on those right now when you got the domestic pressure pumping market a little bit weak right now?
John H. Batten
The uptick is actually or the 8500 in air clutches and the uptick, as you point out, given the domestic flatness has actually been for Asia. We’ve had increased order activity both in North America and Asia but the majority of our new orders are actually going in to Asia. The 7500 is still on schedule for release and production in the fourth quarter. We’re completing lab testing and preparing to do the field test on rigs right now. The order uptick hasn’t been the 7500 yet, it’s strictly the 8500.
[Bo MacKenzie – Global Hunter Securities]
John, on that with the 7500, when you say the fourth quarter you mean the fourth calendar quarter, right?
John H. Batten
It would be the second calendar quarter of 2010, our fiscal fourth quarter.
[Bo MacKenzie – Global Hunter Securities]
Your fiscal fourth quarter?
John H. Batten
Correct.
[Bo MacKenzie – Global Hunter Securities]
I know that you’ve made this specifically designed to go for the pressure pumping business as opposed to modifying an existing transmission, can you describe kind of where you stand in terms of weight, or torque or whatever kind of the key things are that you’re going to be able to offer as a value as opposed to people that might have either an [Allison] or an existing 8500 installed on their equipment.
John H. Batten
Sure, we’ve actually done a lot of work on that. The transmission is rated at its release will be 2600 horsepower. It’s comparable in weight to the competition for horsepower per pound. The advantage really is that it is completely designed for frac pumping and the ratio splits are such that even competing against transmissions that are lower horsepower, operators will be able to operate more efficiently and potentially take fewer rigs out to do a job. So while they may have to spend more money for our transmission, they’ll use less assets at any given site to do the job. That’s how we’re positioning it and we think we have a very good chance to do that.
- To read the full transcript on Seeking Alpha, click here »
