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LoJack Corp. Q1 2008 Earnings Call Transcript

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2008-05-16 14:52:09.0

Tags: LoJack Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Jeff Blaeser of Morgan Joseph. Jeff your line is open.

Jeff Blaeser - Morgan Joseph

Yeah, good morning, thank you, sorry. A couple quick questions, one on the marketing expense, you mentioned you're going to get a little bit more aggressive with that. Does that translate to more dollars or just more concentrated territories?

Ronald Waters

Increased dollars and increased coverage.

Jeff Blaeser - Morgan Joseph

And can you give us a feel for how much of an increase?

Richard Riley

No, Jeff. At this point, no, we haven't provided the details of that. I think we did indicate in the year-end call that we intended to increase our spend there, but haven't broken it down in any detail at this point.

Jeff Blaeser - Morgan Joseph

Okay. And then, for your guidance, what kind of range are you looking for on the domestic car sale base?

Richard Riley

On the domestic car sale side of the business, we typically don't break our guidance down to that level of detail. I would say that, at a high level looking in, we expect the unit volumes to be relatively consistent in the second half of the year with where they have been in the first half.

Jeff Blaeser - Morgan Joseph

But in like new car sales, are you looking for 15 million or 16 million or you don't break that out?

Ronald Waters

We don't break it out. I think the prognosticators have it in the $14.8 million to $15 million range.

Jeff Blaeser - Morgan Joseph

Okay. And then just one final, I think if I break it out, it looks like about 30% of your installs seem to be internal LoJack. Any feel for how much of a fixed cost that is on an annual basis, and if that 30% is accurate?

Richard Riley

Yes, I think we had 52% third-party installations in the quarter and so I think the inverse would be the LoJack percentage for the first quarter. Relative to that, no, we haven't broken it down in any great level of detail. You do get some visibility of that reading through MD&A in the Q that comes up and that will be filed over the next 10 days or so.

Jeff Blaeser - Morgan Joseph

Okay. Thank you very much.

Operator

Our next question comes from Andrew Spinola of Needham.

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