Mercury Computer Systems, Inc., F2Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-01-27 15:29:13.0

Tags: Revenue, Mercury Computer Systems Inc., Performance, Lockheed Martin Corp., Call Transcript, Earnings, Booking, Operational Accounting, Performance Management, Finance, Human Resources, Workforce Management, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We will take our first question this afternoon from Mark Jordan with Noble Financial.

Mark Jordan - Noble Financial

Good afternoon gentlemen, I have three questions if I may. First; what was the operating loss at Visage in the second quarter?

Bob Hult

Yeah, on the non-GAAP basis, Mark, we noted that could be $2.1 million.

Mark Jordan - Noble Financial

Okay. Secondly, looking at as Mark said, obviously, you have seen some very attractive growth and you had decent bookings there. Could you give us an idea of what might be a reasonable ramp in terms of revenue that Mark said moving forward? And where would you place the revenue breakeven threshold for Mark said on a quarterly basis?

Bob Hult

Mark, we haven't broken down specifically revenues and bookings by business unit from a guidance perspective. We do expect that bookings and revenues will grow from this point forward.

In terms of the breakeven, again. Well where the breakeven is on revenue?

Mark Jordan - Noble Financial

Yes.

Bob Hult

The range.

Mark Jordan - Noble Financial

Yes.

Bob Hult

Three to four per quarter, that was your question Mark?

Mark Jordan - Noble Financial

Yes. On a quarterly run-rate where you would assume that as Mark said could be breakdown?

Bob Hult

Yes, I think that’s probably where it is somewhere around near three to four, but I will try to be do exact.

Mark Aslett

Yes, I think it depends upon how much work we subcontract out versus the mix of resources that we have internally. But as Bob said that’s not about number.

Mark Jordan - Noble Financial

Okay. A final question, you had press release couple of days ago on your PowerStream 7,000 that you had delivered to Lockheed Martin and apparently we have seen some significant success. Could you contrast the performance enhancement to 7,000 had versus the entire VME product that used by Lockheed in the FUY Aegis radars? And is this significant enough that it could be a catalyst for a major refresh cycle?

Bob Hult

Okay. So, the PowerStream 7100 product is the next generation of the previous generation that Lockheed was using. The 7100 product is the product that would likely be deployed as part of the Aegis Ballistic Missile Defense Program when it hits production, probably likely sometime in our non-financial year '10. In terms of the performance upgrades, it gives increased [Pro] Digital single processing capability. And given the sensitivity, we are not really in a position to be able to expand too much upon in terms of the performance improvements.

 

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