Question-and-Answer Session
Operator
Thank you sir, today’s question and answer session will be conducted electronically. At this time if you do have a question you may signal by pressing star one on your touchtone phone. If you are using a speakerphone today please make sure your mute function is turned off to allow your signal to reach our equipment. And once again if you do have a question at this time, please press star one on your touchtone phone. Star one for questions and we’ll pause for just a moment to allow everyone a chance to signal. We’ll take our first question from Brian Alexander with Raymond James.
Brian Alexander – Raymond James
Good morning, could you guys just talk a little bit about what you’re seeing from a demand perspective through the month of January. Obviously there’s a lot of concern out there and you’ve got your entire business in North America where there seems to be more concern, so if you can go through the different customer segments and talk about what you’re seeing, normal seasonality or if there’s any difference in patterns versus your expectations.
Tim McGratch
Hi Brian, this is Tim McGrath, I’ll take that question. So the question was how do we see demand by segment for January 08? And customer demand as you know was solid for us in Q4 and at this point is in line with our expectation for the quarter Q1. For January, we are right on our expectation, so we really aren’t seeing very much fluctuation. And that is across all three segments.
Brian Alexander – Raymond James
Okay great and then on the large deals that you had in the quarter, it sounds like that was about $30 million of incremental revenue, if I back into what the implied profitability was on the incremental revenue, it doesn’t seem like it generated much in the way of incremental margin, could you just kind of walk us through the margin profile of those deals. Were those two new customers or existing customers and how should we think about those types of deals going forward? Was this more of a one off or might you entertain large deals at very little profit if that assumption is correct in the future?
Tim McGratch
Okay Brian, again this is Tim McGrath and I’ll cover that. I think the question really is given the large opportunistic deals that we generated in Q4, how did that effect our business, what was the reason, the strategy for that. And I think we’ll kind of break that up a little bit, I’ll kind of cover the sales aspect and I’ll ask Steve for a little help on some of the go forward margin aspects. Overall as you know our sales increased 14% in Q4 and a big part of that increase was from the video products sales to three separate commercial customers.
- To read the full transcript on Seeking Alpha, click here »
