AmerisourceBergen Corp. F4Q09 (Qtr End 30/09/09) Earnings Call Transcript

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2009-11-03 13:33:09.0

Tags: AmerisourceBergen Corp., Generic, Call Transcript, Earnings, Specialty Business, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Eric Coldwell from Baird.

Eric Coldwell - Baird

First Dave, I think you are marking a milestone this quarter so congratulations on, I believe, 50 quarters now.

Dave Yost

Thank you very much for noticing, thank you very much that’s good.

Eric Coldwell - Baird

The question is on specialty on great on in the quarter. A couple mentioned about the higher margin and the mix of services there. I think you might make its weight until December, but I am hoping to kind of get validation of what you guided through this years which was operating margin of around 1.6% in the segment and more importantly what drivers there might be to actually maintain or grow that operating margin into fiscal ‘10 or maybe generics would be one driver but I am looking for other opportunities perhaps in the services business? Thanks so much.

Dave Yost

I don’t want you to think Mike is talked about delivering the strong results and getting have a have a little trouble with his throat, I try it kick it off, but I would say one of the issues for sure Eric in the specialty business is the opportunity in generics. We had actual product, which I mentioned earlier was an issue for the specialty business.

I think demonstrates the fact that generics within specialty do provide opportunities going forward. Sometime that’s over look to going forward. We also have a very, very strong specialty services business and this quarter did particularly well. So our things are well positioned for us going forward. We continue to be very excited about the specialty business.

Mike DiCandilo

Eric, we will breakout the margins as we usually do in December. I’d like to stay away from that a little bit now, but I think you will see an up tick in the specialty margin.

Eric Coldwell - Baird

That’s great. Thanks so much.

Mike DiCandilo

Thanks.

Mike Kilpatrick

Next question please.

Operator

Our next question is from Glen Santangelo of Credit Suisse.

Glen Santangelo - Credit Suisse

Yes, thanks for taking my question. I just wanted to explore the revenue guidance a little bit. I was expected 5% to 7% and if I look at the first half given the new contract wins you should be significantly above that. Are you just kind of curious? Are you taking a little bit more of a conservative cut in the guidance in the June and September quarters next year or does that include some of the run off from loans? I’m not sure if there’s an update on that situation or the timing around that, any kind of clarity would be helpful. Thanks.

 

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