Question-and-Answer Session
Operator
(Operator Instruction). Our first question comes from Tom Bock with Bock Evans.
Tom Bock
Hello gentlemen and congratulations on the funding. I had one question, if I could, for Mr. Reichard and two if I could for Mr. Berger. For Mr. Reichard, what sorts of obstacles or objections to ISCO's dANF solutions are you hearing from operators of the various 450 MHz systems?
Gordon Reichard
This is Gordon. You know, we are not hearing a lot of opposition. It's more of a challenge for us to get in front of the network operator, to communicate what it is a product does, how it does it, and then put the steps in place to execute a trial. I can't point to specific objections. It's, again, it's just brute force getting out there in front of those customers.
Tom Bock
I see. Do you believe -- just a little follow-up to that one if I could? Do you believe the Telesur thing opens the door to other like networks that have a similar operator, like Alcatel or similar systems? Does this help you shorten your timetable?
Gordon Reichard
Yes, we've identified the 450 megahertz CDMA networks around the world, and we are engaging in discussions with them, with those carriers. Yes, the Telesur win is a very meaningful, very valuable success for ISCO because it does clearly prove out the value proposition, one of the value propositions of the dANF adaptive interference product. In the Telesur case, it clearly allowed that network operator to substantially improve the call capacity, cell site coverage, and call performance of their network very, very, mind you, very cost-effectively.
Tom Bock
Thank you very much. Now, if I could, for Mr. Berger, I just had two questions for you. The first one is how are you insulating the Company from currency risks when you do these overseas contracts like the Telesur contract?
Gary Berger
What we did on the Telesur contract is we received half the total amount of the shipment in advance of the shipment, and with that, we felt we were in good shape. We had already shipped them one unit on a smaller trial basis, both for their site and ours, and they had paid that on time. Given the magnitude of the order that we shipped them, we asked for half of the money upfront and they were willing to pay that. On the other part, we received money in less than 30 days for the remainder of the original hardware shipment. That will be our approach go forward. To the extent we can get money upfront from customers, that would certainly be our preference. To the extent we don't do that, we will look for letters of credit that we can go against that, based on the passage of time, once we present shipping documents, we could go out and get the money. As far as currency risks, as far as currency fluctuations, given the short cycle from when we ship the product to when the [monies] are due, first of all, we are asking for payments in dollars and then the short cycle time. I don't think there's much risk there in 30-day payment terms.
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