Anaren, Inc. F1Q09 (Qtr End 09/30/08) Earnings Call Transcript

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2008-11-17 01:58:12.0

Tags: Call Transcript, Order, Earnings, Anaren Inc., Mergers & Acquisitions, Corporate Law, Investment, Finance, Business Operations, Seeking Alpha, Call Transcript, Order, Earnings, Anaren Inc., Mergers & Acquisitions, Corporate Law, Investment, Finance, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) And your first question comes from the line of Steve Ferranti.

Steve Ferranti – Stephens, Inc.

Thank you. Congratulations, guys, on a very nice quarter.

Lawrence Sala

Thank you.

Steve Ferranti – Stephens, Inc.

I just wanted you to clarify. Larry, did you say in your prepared remarks that the Space and Defense backlog was $77.6 million?

Lawrence Sala

Yes. And that includes the two acquisitions.

Steve Ferranti – Stephens, Inc.

I see. Okay. Do you have any sense for what the contribution from those acquisitions were?

Lawrence Sala

Yes, I believe it was something around $18 million.

Steve Ferranti – Stephens, Inc.

Okay. Got you. And are you starting to see – sounded like you're starting to see some order flow from SERC [ph]? Is any of that built into your backlog at this point?

Lawrence Sala

We do – we did during the quarter, I should say. We received partial funding for an initial production order. I believe it was something on the order of a little less than $2 million is actually in our backlog right now.

Steve Ferranti – Stephens, Inc.

Okay. And I guess how do you see that opportunity? Do you have any more clarity on it in terms of how that opportunity plays out? I mean, it looks like they continue to win business related to crew. And I'm wondering what kind of visibility you might have there at this point.

Lawrence Sala

Well, I guess, in the near-term, what we have in front of us is partial funding on an order that if it's fully funded, should turn into about $5 million of initial orders. So that's what we have firm in front of us. We've been funded $2 million of what should be a $5 million order. We would expect that to be delivered this year.

In general, if the program goes forward as expected, if there is a one for one replacement with what's in the field, we would expect this project to be something on the order of about twice the size of the original true project for us. So that would be something on the order of about a $20 million program for us if that goes to a full one-for-one replacement or modification of the fielded systems. We don't have a good feel for time frame of that or when we would expect to see any follow-on orders beyond the one that we have so. As we get more clarity, we'll hopefully be able to give you some better guidance.

 

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