L-3 Communications Holdings Q4 2008 Earnings Call Transcript

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2009-01-29 17:24:14.0

Tags: L-3 Communications Holdings Inc., Credit Suisse First Boston, Call Transcript, Aircraft, Training, Earnings, Michael Strianese Ralph, Aerospace & Defense, Workforce Management, Training And Certification, Sales Strategy, Manufacturing, Human Resources, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). You have a question from the line Rob Spingarn with Credit Suisse. Please proceed.

Robert Spingarn - Credit Suisse

Good morning. I'm looking to see if its morning or afternoon, its still morning.

Michael Strianese

Good morning Rob.

Robert Spingarn - Credit Suisse

Hey guys. On the couple of things, on the F-16 win and you mentioned Mike that you've been talking about that for sometime, can you give us a sense of the size of that and the ramp?

Michael Strianese

Well, there is some customer sensitivity is there and again it's the initial press release talked about $68 million. But as you know it's a mission training center. So I don't want to talk specifically to that but those are typically long, wide programs that would typically involve the provision of -- the wide training devices, course curriculum material in some cases, like in Oklahoma or on the AUX we provided an entire turnkey training facility. So, we'll be able to talk more about that I think later this year. But I would do that as beyond the one year opportunity.

Robert Spingarn - Credit Suisse

Okay.

Ralph D'Ambrosio

It's also very strategic for us in the sense that we believe that getting our state-of-the-art HD World Simulator in that F-16 community will be very key to creating demand for other fast jets where we do not have our simulators also. It's very strategic for us.

Robert Spingarn - Credit Suisse

Okay. And sticking with aircraft going back over to JCA, you talked Mike about deliveries in 2010 and a hiatus in 2009. How should we think about the revenue flow associated from '08 to '09 to 2010 on JCA?

Michael Strianese

Ralph has that for you, so go ahead Ralph.

Ralph D'Ambrosio

Sure, on sales we did a $130 million for 2008. We are currently expecting about 170 million in sales for 2009 and that goes to about 230 million in 2010 and then close to 400 million in 2011.

Orders we booked a 144 million in '08. We expect to have orders of about 220 million in 2009, that's for 7 aircraft. In fact, I think we already booked those 7 aircrafts last week. For 2010 we're expecting orders of 11 aircraft for about 350 million and then the orders could go through 0.5 billion in 2011. So we will have nice increases in both orders and sales in the next few years on this program.

 

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