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Spectrum Control, Inc. F1Q08 (Qtr End 2/29/08) Earnings Call Transcript

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2008-03-28 09:41:07.0

Tags: Spectrum Control Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question is from Ted Kundtz - Needham & Company.

Ted Kundtz - Needham & Company

Could you give us a little more color on do you think this is a sustainable kind of order trend that you’re seeing? Maybe if you could hit the telecom sector first and then maybe a little more color on the military aeros and defense side. What do you see kind of on a longer-term basis around the balance of the year?

Do you get any sense of that or is this just kind of what you’re seeing right now and you don’t have a whole good lot of sense for the balance of the year, maybe you could just sort of help us with that a little bit.

Richard A. Southworth

I would say for the balance of the year, it’s always difficult and I think you realize that it’s whether the programs get funded. We have a lot of new programs and I think one of the key indicators that I look at is the fact that we have a large technology team. We have over 125 people that are working every day to develop and create new products, new custom products for our customers. And these people are swamped today.

In fact, all of our business managers continue to drive that we could expand our team probably by 20% or even more and keep everyone busy with these programs, but it’s always a matter of economics on how fast we move on these things. For the immediate quarter, there are significant programs yet. The commitments are all there. We’re just actually waiting for the paperwork so that we can book them and move on.

I can say right now we’re very high on the second quarter and I think that trend holds true for the whole year. We see also some opportunities that are and probably will be Crew related for the second half of the year that we believe in. It’s going to come our way.

Ted Kundtz - Needham & Company

Crew related, is that the Crew program you’re talking about?

Richard A. Southworth

On the CREW program, we have a lot of different customers Crew related.

John P. Freeman

And Ted, if I might, just to make sure there’s no misunderstanding, the current strong uptick that we have seen recently in orders, both from telecom and for military and defense, the military and defense that we have seen and what we are forecasting for the rest of the second quarter does not include any significant Crew. That opportunity is something that we see later in the year?

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