Question-and-Answer Session
Operator
(Operator's Instruction) Your first question comes from the line of John Kraft - D.A. Davidson & Co.
John Kraft - D.A. Davidson & Co.
First of all, nice work. It looks like a good quarter.
Lynn Boggs
Thank you, John. We think so.
John Kraft - D.A. Davidson & Co.
Lynn, first question here, as far as the guidance goes, the EBITDA guidance for the year sort of implies a sequential decline from what we did in Q3. Is there just some conservatism in your guidance or were there some quarter or Q3 things that maybe were robbed from what you would expect in Q4?
Lynn Boggs
I would not use the word rob there, John. I think I would use the fact that I think we finished some business and have business roll into Q3 that we fully expected in Q4. So, when you take those numbers back out, we would do the math and you get to a lower number than what we expected than that we actually received in Q3. I mean the $85 million to $86 million would imply that we ought to do somewhere in the 21.3 to 23.3 number for Q4 which obviously the midpoint were based around on where we are today on revenue and then the same thing on the EBITDAS of $11.4 million. We did $4 or $5 in Q3 and it puts you an implied number of somewhere around $3.6 million roughly in Q4. So we think probably a million to million $2 of revenue was pushed from Q4 down and somewhere around $800,000 or probably $700,000 of EBITDAS was pushed down into Q3. Scott, do you have anything to add to that?
Scott Meyerhoff
Yes, John the only other thing to add is obviously in the current environment. The Q4 is usually a nice purchasing period from scanners and additional licenses and in this environment, you have just taken the safety route, you just do not know if people are going to use the yearend budget opportunity to buy. They commonly happen most Q4s so we try to be conservative as well as Lynn alluded to some things that have been discussed a little bit early.
John Kraft - D.A. Davidson & Co.
Okay that is fair and then I guess specific to the scanners, it sounds like the pricing has been getting a little bit more competitive. Are there new vendors, new entrants there or what is happening? Also, are you starting to see one of your pressures as mentioned specifically that the larger institutions already bought the bulk of scanners so now you are seeing that just smaller institutions buying the scanners that sort of hurt the sales numbers, is that something you are seeing as well?
- To read the full transcript on Seeking Alpha, click here »
