Mercury Computer Systems, Inc. F4Q08 (Qtr End 06/30/08) Earnings Call Transcript

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2008-08-30 06:16:10.0

Tags: Mercury Computer Systems Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Stephen Levenson - Stifel Nicolaus & Company, Inc.

Stephen Levenson - Stifel Nicolaus & Company, Inc.

In terms of the delays on some of these defense items, is this something that you think is going to be sort of a permanent push-out to the right or is it more likely that there’ll be some catch up along the way?

Mark Aslett

I think the push is grouped into two categories Steve. Two of the pushes that we saw were due to funding delays. We expect that those deals should come in during FY09. The other was to do with a program that we believe that we are a part of that was contested. So that one is a little bit uncertain at this point because we don’t know exactly what’s going to happen with the result of the protests.

Stephen Levenson - Stifel Nicolaus & Company, Inc.

I’m going to guess that that’s broad area Marine surveillance?

Mark Aslett

That would be correct. If that contest is withheld, the timing is a little uncertain. If the contest is turned down, then we should proceed here shortly.

Stephen Levenson - Stifel Nicolaus & Company, Inc.

Within the last few days there are some reports coming out that the Department of Defense is looking to reprogram about $1.3 billion to intelligence surveillance and reconnaissance projects and programs. Do you think that might help you and if so, how?

Mark Aslett

We think probably yes. We have a focus on that part of the market going forward. The concept that we’re working on around the converged sensor networking architecture is really directly targeted at the ISR space. So hopefully we will benefit from the funding redirection on a go-forward basis Steve.

Stephen Levenson - Stifel Nicolaus & Company, Inc.

Is that something you think you could see that could add to revenue in 2009 or do you think it’s more likely to take more time?

Mark Aslett

Hard to tell at this point. My gut would say it’ll probably take a little bit longer than that.

Operator

Our next question comes from Jonathan Ho - William Blair & Co. LLC.

Jonathan Ho - William Blair & Co. LLC

With regard to the book-to-bill, this seemed to come in a little bit lighter than what you guys had talked about. Can you talk about just maybe the shortfall relative to your expectations and where that took place?

 

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