Tier Technologies Inc. F4Q08 (Qtr End 10/31/08) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2008-12-09 19:23:12.0

Tags: Revenue, Call Transcript, Earnings, Internal Revenue Service, Tier Technologies Inc., Taxes, Free Trade, Operational Accounting, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Wayne Johnson - Raymond James.

Wayne Johnson - Raymond James

Question on the IRS RFP, what is the primary criteria that you think the IRS evaluates your response to that RFP and how many companies do you think you are competing against, could you just give us a little color on that to the extent that you can and what would be the timing range for our response from the IRS?

Ronald Rossetti

I will let Kevin Connell who heads the sales area respond to that directly. Kevin?

Kevin Connell

The IRS looks at a number of factors in determining its award plus the revenue of past performance seats and design, seats and security and testing, management of the Company and customer service, marketing and deliverables and obviously experience and capabilities. As for the number of respondents, I really cannot give you that. We are not giving a list of that as we respond for it. My expectation is it was a reasonable respondents as a dozen comes do all that often. Climbing the award is not made public by the IRS. We gave guarantee, our offer for 120 days, in fact, we will give you some guidance on when we think they might answer, we can take that.

Wayne Johnson - Raymond James

Okay. Do they take into consideration your in hand Tier's enhancements for My Account and other new services you guys are offering?

Kevin Connell

I think you will see that fall under one of the factors I mentioned earlier, most likely marketing and deliverables and certainly under strength and capabilities.

Wayne Johnson - Raymond James

And the next question maybe better served in greater detail offline but I am going to plow ahead here online, so to speak. Just in terms of how should we think about the overhead over the next two to three years corporate overhead, can you just kind of review those plans again real quickly and what do you think the revenue is going to be to cover those expenses? Or revenue growth rate I should say.

Ronald Johnston

Well, we have already stated from the revenue growth rate that we just based upon what has happened in the marketplace, it is extremely difficult for us to estimate revenue growth rate. We think that we are going to hold to amid single digit revenue growth rate number for this year. You just look at the tape as you think New York City came out with the fact that they have got a refund, some $800 million or $850 million worth, and this is the serial loan, not the state of taxes from small businesses that were paid on estimates and these businesses are not going to be recovering, showing that current of income. So, it is an open question for us and until we have visibility in the first couple of major tax areas, property tax areas and until we see what happens with state income tax in the federal state area, I believe it is going to be difficult for us to forecast 2009 and 2010.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here