Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Richard Todaro, CFA – Kennedy Capital.
Richard Todaro, CFA – Kennedy Capital
I think we have pretty good visibility in what’s going on in DBS and in direct TV, but could you guys give us a little bit more color on Wireless? In your guidance you guys are guiding Wireless down sequentially and I just don’t know the amount and why and if that’s going to bottom or stabilize. You gave some guidance in the back half of the year but how can we have any comfort in that, what gives you comfort that that doesn’t continue to climb?
Richard B. Gold
There’s a couple questions in there. Let me take the current question first and then I’ll transition to the forward-looking piece of that. In the current quarter on a sequential basis in Wireless we had softness in all of the segments, the public safety segment, we had softness in mobile resource management, we had softness in industrial monitoring and controls, for reasons I think that are all generally connected with the economy but in different ways.
The public safety as an example, there were a couple new police data systems that we had been selected on. One of them was actually a follow on where we’re sole source and those projects they slipped in time. We expect them to happen, all the indications are that they will happen but municipal funding is clearly under some pressure.
I think there’s a number of projects that we’re looking at in the pipeline where the ultimate funding or a big piece of the funding is from the Federal government. I think those are looking very solid but obviously anything where the primary source of funding is from local tax revenues is, there is some pressure on those.
I think from a competitive standpoint what we’re seeing in that market, we’re not seeing significant shifts, we’re not seeing customers going away but we are seeing some projects getting delayed or scaled down.
In the mobile resource management area a couple quarters ago we had some substantial sequential increases there that were driven by fuel prices and earlier in the year we had had some, in our Aercept vehicle finance sub-vertical we’d had some sequential drops due to what was happening in the used car market and particularly the sub-prime used car market but that was in large part compensated by the fact that as fuel prices went up the fleet operators were accelerating the pace of introduction of tracking modules for fleet tracking.
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