Captaris Inc. Q4 2007 Earnings Call Transcript

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2008-02-18 18:04:07.0

Tags: Captaris Inc.

Question-and-Answer Session

Operator

Thank you sir. (Operator Instructions). Our first question comes from the line of Kevin Liu. Please go ahead.

Kevin Liu - B. Riley & Company

Hi, good morning guys.

Dave Anastasi

Hi Kevin how do you doing?

Kevin Liu - B. Riley & Company

Just wanted to talk about what kind of the long-term opportunity there is now with all the acquisitions as well as with kind of the -- in cost reduction efforts that are being put in place. I mean as you look out the '09 and maybe beyond that kind of the long-term top line growth rate as well as where do you think potential margins could go?

Pete Papano

Okay, Kevin this is Pete, in terms of long-term growth rate, (inaudible) business so about overall growth rate I think now in the content space is about 10%, 10% to 12%, 13%. So we think we can grow as rest of the market rates and we will consider long term rate and we think what we should do to do better than that. So the question about the margin as the company gets larger there is some such [cyclical] opportunities that he have to scale, because we a G&A cost basis but a much bigger revenue basis. So as I mentioned Kevin we expect to see improve in operating margin percentage and then if you take out that non-cash effect of the purchase account and when we looking to around the horizon that we expect around the businesses in double-digit operating margin percentage and some of the amortization charges.

Dave Anastasi

Well, this Dave Anastasi, I think our traditional our run rates have picked up and in some of our top order we are very optimistic about some of the acquisitions and (inaudible).

Kevin Liu - B. Riley & Company

And then I guess just lastly I know you guys haven’t commented too much in the past, but there is some discussions that factored. I am just curious there was ever update on the table and if so why did you guys not feel like that was right for shareholders?

Dave Anastasi

(inaudible)

Kevin Liu - B. Riley & Company

All right. Thank you.

Operator

Thank you, sir. Our next question comes from the line of John Maietta. Please go ahead.

John Maietta - Needham & Company

Hey, thank you very much. Question -- couple of questions actually related to cash flow. I was just wondering how we should think about operating cash flow in '08? What potentially could be the growth range there and Pete also the comment about how we should think about CapEx from calendar '08?

 

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