Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Mark Arnold from Piper Jaffray. Please go ahead.
Mark Arnold – Piper Jaffray
Very nice quarter guys. Let me just start with the CAP business. You haven't broken out CAP revenues for a while and unless you've decided not to sign that new contract, can you give us a sense of what the revenue loss will be for 2009?
Richard Friedman
Sure. Good morning, Mark. Yes, I just said that a little while ago but it is going to be approximate, based upon our run rate in the second quarter it is about $70 million.
Mark Arnold – Piper Jaffray
Great. And then do you think anybody is going to sign this contract given the unprofitable nature?
Richard Friedman
Mark, it's up to – as I said on the last quarter that we really wanted some modifications made to those contracts and the modifications weren’t made. So it is going to be up to the individual companies to go ahead and do this. I really believe that the government has an incredible opportunity on Medicare Part B with a few modifications that they need to make, but until they do that it is going to be up to the individual companies. We just believe the risk is too great.
Mark Arnold – Piper Jaffray
Any chance that the comeback begging with the structural changes if nobody signs this in the coming months?
Richard Friedman
I would hope they will but I don't know.
Mark Arnold – Piper Jaffray
Then, just on the United Health contract, obviously that is the big growth driver for this year. I know you guys haven't given any specific guidance but can you give us a sense of where we are in the ramp up, you know, in Q2 are you maybe 25% on the way there, 50%, just any sense of how far along you are with that so we can get a maybe a better sense of how strong the back half of the year could be?
Richard Friedman
Sure, I would be happy to. Just understand this, United is a driver but we have significant other business, which are fairly large drivers outside the United. At this point in time we really are pleased with the performance under the contract, however, I believe that we're going to continue to grow but it is going to be at more moderate levels going forward. So we're pleased with the performance to date but it will continue to grow but it will be at moderate levels. Scott, do you want to add anything to that?
- To read the full transcript on Seeking Alpha, click here »
