Radiant Systems, Inc. Q2 2008 Earnings Call Transcript

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2008-08-25 08:30:31.0

Tags: Radiant Systems Inc.

Question-and-Answer Session

Operator

(Operator instructions) Gil Luria from Wedbush, you may ask your question.

Gil Luria Wedbush

Thank you. Would you mind breaking out the growth for some of the segments? I think I heard you say that hospitality grew 20%, but I also think you said that restaurants grew 20%. How much did the food service business grow?

Mark Haidet

Gil, this is Mark. For the quarter, the restaurant business was up roughly 20%. And I think sometimes we make the mistake of interchangeably using hospitality and restaurant, but we were referring to the restaurant-specific portion of the business.

Gil Luria Wedbush

And then the entertainment and specialty retail?

Mark Haidet

Yes. Specialty retail was up 3%, and the petroleum and convenience store business and the entertainment business were both down approximately 15% to 16% each.

John Heyman

Well, the sports and entertainment, you got it –

Mark Haidet

Yes, I'm referring just to the entertainment portion of the business. The Quest portion, or the sports portion of our sports and entertainment, was up, but that's a new part to the business for the year.

Gil Luria Wedbush

Got it. So it looks like all of the change to guidance is from petroleum/convenience, entertainment, and the change of tax. You really haven't seen a change in the rest of the business?

John Heyman

I think that's accurate. I mean, I think without that change in PCS, we would have felt – we probably would have been increasing our numbers.

Gil Luria Wedbush

Now, as you finish the acquisition of Orderman, as complete that and start integrating it, what is the latest breakdown for this quarter between US and international?

John Heyman

For this quarter?

Gil Luria Wedbush

Yes.

Mark Haidet

I'm sorry, Gil. For the second quarter we just finished or the third quarter going forward?

Gil Luria – Wedbush

The second quarter.

Mark Haidet

Yes. The second quarter, our international revenue was roughly –

John Heyman

12% of total company revenue.

Mark Haidet

Right.

Gil Luria Wedbush

Yes. Go ahead.

John Heyman

It was 6% in the restaurant, and remember, Orderman is not included in those results. We closed that deal literally on the first business day of the third quarter.

Gil Luria – Wedbush

And you still expect that to contribute $9 million for the balance of the year?

Mark Haidet

Yes, approximately. That's – one of our assumptions in our guidance is that it's going to be roughly $9 million for the year.

 

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