Question-and-Answer Session
Operator
(Operator Instructions) We’ll pause for just a moment to assemble our queue. We’ll go first to Mark Smith with [Inaudible].
Mark Smith – [Inaudible]
A couple of questions, first can you give us anymore insight on SkyWire on how it’s gaining traction? Also, any other new products that you’re looking forward to as we look further out into 08?
Myron Wagner
I think the best way to characterize the SkyWire take up is it’s a product that we’ve now shipped for about a little more than three months and at this point it is tracking what our projections were for the year. We clearly expect to ship more and more of the product throughout the year but certainly the first few months in production and the first few sets of customer operational trials and now deployments is going very well. So, we’re fairly early in the take up curve but I’m very encouraged with what we’re seeing in the market and I think we’ve hit the thing right in the dead center where we wanted to be.
Mark Smith – [Inaudible]
Any other new products or anything else that is worth commenting as we look further out into 08?
Myron Wagner
Well, I alluded that we are continuing product development actually in all of our businesses but at this point what you really probably can expect to see nearest term will be additional enhancements to SkyWire. But, we do also have other products in the pipeline. I normally won’t talk about those until they are near imminent for obvious reasons.
Mark Smith – [Inaudible]
Okay. Second, kind of housekeeping, can you talk about SG&A expense as it pertains to AeroAstro? Where that came in and are you running kind of at an optimal rate now or is there an opportunity for leverage there?
Malcolm C. Persen
We are obviously going to be looking for opportunities for leverage and that is something that we think as we continue to encourage AeroAstro to take on more discipline in the way they manage their business we think there are opportunities for that. Having said that, it is important to point out AeroAstro, about two thirds of their revenues are government contracts which call for reimbursement of all their expenses including the vast majority of SG&A. So, it’s important to keep in mind that although their operating margins tend to be a little bit leaner than we’re use to in the rest of our business, since that SG&A is recoverable the risk associated with it is much lower.
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