Radiant Systems, Inc. Q1 2008 Earnings Call Transcript

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2008-05-16 14:53:20.0

Tags: Radiant Systems Inc.

Question-and-Answer Session

Operator

Thank you. We will now begin the question and answer session. (Operator Instructions) Our first question comes from Vincent Colicchio. Sir, your line is open.

Vincent Colicchio - Noble Financial Group

Nice quarter, guys, just a couple of questions. It sounds like your overall market on the restaurant side remains quite vibrant. Could you give us a little more color in terms of quick service, fast casual, and TSR, how things are shaking out?

Andy Heyman

Yeah. This is Andy. The hospitality business, when we look at geographic success, product success, or segment success, and your question was along the lines of segment success in terms of table service, or fast casual, or fast food. We're having consistent success across all of those segments right now. We have a very balanced portfolio and so we're encouraged by the strength across the board in the segments we're serving.

Vincent Colicchio - Noble Financial Group

And in those segments, have the competitors re-priced offerings, anything changing on the competitive landscape?

Andy Heyman

It's a great question. We stay very close to that as we have over the years. And I think there's two kinds of competitors that we're seeing right now. One is the smaller competitors, and there's over 50 competitors in the hospitality space, but the smaller competitors make up the vast majority of those and we have seen a retraction from them, in terms of how they are spending and how they are trying to go after the market.

So we have seen a pull back as a general rule with them. With what I'd say are the largest competitors, what we are seeing now is it's really difficult when you have a history of poor service and low-end product offerings like they do. That it's tough to make up for that with simple pricing tricks in tough times. Our customers and the industries we serve are too smart for that.

Vincent Colicchio - Noble Financial Group

I have a question on the specialty retail side. Is the weak economy helping you accelerate your build-out of your sales force? Can you give us an update there?

John Heyman

Well, we've continued to add to the sales force. It's probably grown to, at this point, over 40 people who are being productive, and they've driven probably closer to 50 people that are being productive. Just to give you a flavor, the group itself grew 26.5% in the quarter, but the systems growth of the business in the quarter because their legacy business has a high amount of recurring revenues, the systems business in the quarter grew over 50%.

 

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