Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Steve Sanders, Stephens Inc., please proceed.
[Graham - Stephens Inc.]
This is actually Graham for Steve, congratulations on the quarter.
Rich Meeusen
Thank you.
[Graham - Stephens Inc.]
First question, I think at the end of your comment Rich, you mentioned that there was few small project delays, then outside of that then you are not really seeing any significantly if any in the sales cycle?
Rich Meeusen
None at all.
[Graham - Stephens Inc.]
Okay, and Chicago $4.2 million in the quarter, should we look at this is kind of a run rate quarter going forward, maybe provide an update on how you see the project timeline now versus when the dealer recently announce this.
Rich Meeusen
Well, Chicago being a $39 million project done over three years, we should see a run rate of a little over $3 million a quarter, somewhere between three and four, we’ll have some quarters when we get more done and some quarter when we get less done but we should always be in the $3.5 million to $4 million as move forward on this.
[Graham - Stephens Inc.]
Is that weather affected to on the amount that you can get out there?
Rich Meeusen
We saw last year with the really heavy snow in the first quarter in Chicago we did see some delays, although this time in the fourth quarter, we didn’t see that much. So, I think it depends upon what areas of city they are working in and how the weather works.
Rick Johnson
But I think in terms of comparable for 2009 over 2008 probably be about the same run rate on an annual basis, it might vary by quarter.
[Graham - Stephens Inc.]
Okay, that’s helpful, and then as far as guarantee can you talk a little bit about how significant that is to the revenue line and maybe comment about how margins look versus Orion offering?
Rich Meeusen
The margins on Galaxy are a little bit lower than the margins on our Orion product. When you are selling a new product like the fix network, things are getting a little more price competitive out there, then with the drive by and also our volumes are not up that high that we can spread our cost over the larger volume. Rick, as far as the sale.
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