Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we’ll be conducting the question-and-answer session. (Operator Instructions) Our first question comes from Mark Marostica with Piper Jaffray.
Mark Marostica – Piper Jaffray
Good morning, guys. My first question, I’m not sure if you’re able to disclose this. But can give you a sense of the margin profile of the adoption revenue for the first nine months?
Kevin Baehler
We don’t disclose that, Mark. We keep saying, as far as disclosure of margins, we keep that at the segment level; and for competitive reasons, we don’t like to break it down any further than that.
Mark Marostica – Piper Jaffray
Fair enough. Looking ahead relative to your guidance, are you assuming any further cost savings on the G&A side; and if so, where will those cost savings be derived from?
Kevin Baehler
One area that we’ll continue to look at as we continually do is on the supply chain side. We’ve seen improvements this year in our management (inaudible). We’re still in kind of the budgeting process right now for fiscal 2009, so we don’t have firm goals set. But as we look at the supply chain in totality, we’ll certainly look to make some improvements there.
Mark Marostica – Piper Jaffray
Do you think that’ll be material this year?
Kevin Baehler
I think there’s opportunity there. We really need to work through the budgeting process, Mark. I think there’s some opportunity.
Mark Marostica – Piper Jaffray
Then just relative to Tom’s comments concerning the lean initiative, what are you savings that you’re expecting to glean from that initiative this year and perhaps next year? When I say this year, I should be really referring to fiscal ’09 and then fiscal 2010 and beyond. How should we frame that?
Thomas Slagle
Yeah, I think, Mark, it’s probably a little early for us to pinpoint a number to it. Obviously what we’re doing is looking at estimated values on a per project basis where we’re going after some very customer-driven performance issues that we think we can solve which we do think will drive value, but as of today, I can’t really put a value on it for you. But again, we’re bullish on what we think that can help us drive for the upcoming fiscal year.
Mark Marostica – Piper Jaffray
Then I want to just step back and address the revenue guidance, organic revenue guidance of 3% to 5%. Just looking back that organic revenue growth guidance seems to be at the high end of the historical organic revenue growth range over the last several years and given the economic backdrop that we find ourselves in, I’m curious, what gives you the level of conviction that you’ll be at the upper end of the historical range?
- To read the full transcript on Seeking Alpha, click here »
