Question-and-Answer Session
Operator
(Operator instructions) And our first question comes from the line [Joe Gagnon] of Atlantic Equity Research. Please go ahead.
Joe Gagnon - Atlantic Equity Research
Hi guys, how are you doing?
Terry Blakemore
Fine, Joe. How are you?
Joe Gagnon - Atlantic Equity Research
Good. I have a few questions, on the deferred revenues is that made up of maintenance contracts or what exactly is in there?
Mike McAndrew
Hi Joe, this Mike, yeah that it is maintenance contracts that we have built for and receive payment for expected payment for moving forward.
Joe Gagnon - Atlantic Equity Research
Okay. So, it's all maintenance contracts?
Mike McAndrew
Yes Sir.
Joe Gagnon - Atlantic Equity Research
So, why I guess, why was it jumped from like 20 something million to $52 million after the NextiraOne acquisition? Why did NextiraOne have so much more in maintenance contract compared to the size of its overall business, compared to your previous voice business?
Mike McAndrew
That was driven by the composition of business that they had relative to projects, maintenance in MAC business that was one of the, candidly one of the attractive parts of that transaction that we found interest in.
Joe Gagnon - Atlantic Equity Research
Yeah, that they had so much in maintenance contract revenue compared to normal voice companies?
Mike McAndrew
Yes sir.
Joe Gagnon - Atlantic Equity Research
Okay.
Terry Blakemore
They have bought in larger contracts as well.
Joe Gagnon - Atlantic Equity Research
Okay. And then, I have a question on the [Cadec], on the line item versus cost in excess of billings or uncompleted contracts, and then say billings in excess of cost estimates on earnings on uncompleted contracts. What specifically are those two line items?
Mike McAndrew
Sure. The asset cost in estimated earnings in excessive billings?
Joe Gagnon - Atlantic Equity Research
Right.
Mike McAndrew
That's essentially revenues that we have recognized from a percent completion standpoint.
Joe Gagnon - Atlantic Equity Research
Right.
Mike McAndrew
Where we have not yet invoiced the client.
Joe Gagnon - Atlantic Equity Research
Okay.
Mike McAndrew
And down on the liability section that is invoices to clients that we have not yet executed the work from, a work in process percent complete standpoint. So, it's essentially a sort of a pre-billing.
Joe Gagnon - Atlantic Equity Research
Okay.
Mike McAndrew
Alright.
Joe Gagnon - Atlantic Equity Research
- To read the full transcript on Seeking Alpha, click here »
