TeleCommunication Systems, Inc. Q3 2008 Earnings Call Transcript

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2008-11-17 06:48:18.0

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Question-and-Answer Session

Operator

(Operator instructions) First call to Shyam Patil from Raymond James & Associates. Your line is open.

Shyam Patil – Raymond James & Associates

Hi guys. Congrats on the great quarter.

Maurice Tose

Thanks.

Shyam Patil – Raymond James & Associates

Maurice, I thought you’re going to go with the entire script without mentioning the US Army there. The first question is around that. Could you maybe dissect your different businesses and maybe talk a little bit about how sensitive those might be to the economy in the near term? And is there any major renewal due or large deals that you expect to sign for next year that could be impacted by that?

Maurice Tose

Okay. As we sell the call, text messaging is a growth phenomenon. It is in fact relentless. And it is priced affordably and as a communication medium, non-intrusive, it’s going to be there and just continues to find new ways as we said beyond consumer and in to the enterprise. So, if we believe, it’s going to be fairly resilient to any recessionary forces. Our government systems and our government services, our government business, as we said, our government services is really beginning to pick up a significant clip of services, teleport business, and assistance. I mean, we’ve got visibility on delivery of orders that we have in house already, that we’ll be delivering into and through Q2. And we see additional orders that are funded just working their way through the paperwork process. And then, if you go to public safety, 911 is a pretty much a regulated business, so it is going to be there and continues to contribute, in fact to the company. So, it’s so unbalanced, the segments that we’ve chosen to play in. As a company, we’re blessed they are in fact – we think pretty well resilient to the activity that is going on in the global market place. As far as any large awards or large actions, I mean, we’ve got some ongoing but we don’t see there being an issues with them either, because they’ve fallen to those categories of things that have to be done.

Shyam Patil – Raymond James & Associates

Great, great. And just a couple more questions flat here, I guess, this one you might have anticipated but – when you look at the government business, I know such thing unprecedented momentum right now, how do you think a change in the current administration or a ruling party could affect the momentum in that business either in a positive way or not positive way.

 

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