Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from Charles Boorady - Citi Investment Research.
Charles Boorady - Citi Investment Research
You mentioned the $6 million start up costs for the CDC contract. I understood that was a cost plus contract so was that a $6 million net expense that you’re not getting reimbursed for or is there a timing difference on when you’d recognize revenues related to that?
Jeff Campbell
It’s strictly timing, Charles. As you said all the outcomes are positive although we’re still working through the final terms with the CDC but the accounting does not necessarily follow the payment. And so the revenues will more be recognized along with shipments and the shipments started on October 4.
Charles Boorady - Citi Investment Research
And then on Tech Solutions, and I appreciate the additional time John spent talking about the business, and I wonder when do you think we’ll see the inflection point in revenues related to the increased demand that many of your competitors are talking about? You’ve been talking about post-stimulus and related to that, is there going to be a point where you need to ramp up your selling expense ahead of when you would recognize the growth in revenues? Or will the timing generally match between your revenue growth and selling expense growth in that business?
John Hammergren
Well I think it’s a little bit early to say when is it actually going to hit an inflection point. I guess what I can say is that our field organizations are actively involved in a level of discussions with our customers that we haven’t seen for quite some time. And it’s along two paths. One is the discussion around implementation of product that might have already been purchased but we have not you know recognized the full opportunity because it hasn’t been implemented or installed fully. So even products like physician order entry products or Horizon Expert orders that might have been purchased several years ago, when these products are now desired for stimulus and for meaningful use, they’re focused on how fast can we get them in.
And then there’s a second track of discussion which are those customers who have not bought a complete enough solutions set to begin thinking about how can we get ready for stimulus and make sure that we’re making this happen. I think our sales investment is probably about where it needs to be. Frankly the investment in implementation support staff is commensurate really with our visibility to when customers are going to be ready to implement and want to implement. So you’ll probably see that investment continuing not only this year but also into next year as we think about what’s necessary to make it happen.
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