Radiant Systems Q4 2007 Earnings Call Transcript

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2008-02-18 16:48:08.0

Tags: Radiant Systems Inc.

Question-and-Answer Session

Operator

Okay. Thank you. (Operator Instructions). Our first question comes from Terry Tillman with SunTrust Robinson Humphrey. Your line is open.

Terry Tillman - SunTrust Robinson Humphrey

Hey guys. Good afternoon. Thanks for taking my question.

John Heyman

Terry, how are you doing?

Terry Tillman - SunTrust Robinson Humphrey

Pretty good. I guess, I should say Happy Valentine's Day. Anyways, nice quarter; just had a few questions. The one thing John in terms of Dunkin' Donuts, I know that it was a little bit stymied in the last quarter. Can you talk about in the fourth quarter, which is like a 100% ramped, or it was ramped but not still where it will get to? Could you talk a little bit about that?

John Heyman

I would say, by Q4 it was a 100% ramp, Andy?

Andy Heyman

Yeah.

Terry Tillman - SunTrust Robinson Humphrey

Okay, okay. And I guess, I know you all are careful not to isolate too much on individual customers. But, Dunkin' Donuts, I know you had already been doing business, but now you are the sole supplier, the recommended supplier. Does this become potentially one of your top five customers or was it already a top five customer?

John Heyman

Andy?

Andy Heyman

Yeah. Terry. They are top five customer and they will continue for years, as far as we can see it being a top five customer. It's also probably worth noting that they have growth plans to triple their business between now and 2015 to go from roughly 5,000 U.S. sites to about 15,000 U.S. sites. So, we are hopeful of expanding as they expand as well.

Terry Tillman - SunTrust Robinson Humphrey

Okay. Well, and I guess, Andy does this make it a little bit different, though. I mean, John talked about one of the strengths in the business is it not so levered to square footage growth every quarter. So, is this kind of more of a unique example where it is a lot of new Greenfield square footage growth? Is this more of the exception?

Andy Heyman

I would say that with Dunkin, the majority of the business that we've been looking at with them has been existing sites, and I think that's going to still be the case over the next couple of years. The growth plans that they have are really kind of beyond that, a little bit this year but they've been doing a lot of remodeling, and a lot of investment to try to bring on more dayparts into their business beyond just a coffee and doughnut sales. And as those remodelings have been taking place, the point-of-sale has been replaced as well.

 

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