Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from the line of Atul Bagga with
Thinkequity.
Atul Bagga – Thinkequity
Jim, can you give us an update on the contact with KFC and Chrysler?
James C. Granger
Well, we continue to work very closely with KFC. In fact, we are expecting to deploy another 34 stores over the next few months. So we continue to work very closely with them and continue to supply them with an outstanding digital signage solution. In terms of Chrysler, it continues to be a very difficult market with Chrysler and all of the automotive dealers and automotive companies. As you know, I don’t have to go into the details, the kinds of troubles that they have gotten themselves into the last couple of quarters, and those headwinds are certainly delaying deployments of any new technology.
Atul Bagga – Thinkequity
Last quarter, you mentioned you have a big contract working with KFC which was in advanced stages. Can you talk a little bit about that contract, is it still working? How many locations can we expect to see in 2009?
James C. Granger
I cannot comment on anything obviously that the former management might have said and I think you wouldn’t expect me to. At the same time, I can tell you that KFC continues to deploy in key markets with this technology and we continue to work with them on the rollout of this technology to stores across the country.
Atul Bagga – Thinkequity
Are you expecting to be cash flow-positive in 2009-2010?
James C. Granger
We certainly have the wherewithal in terms of the cost takeouts that we’ve done and in terms of the cash that we have to see ourselves well into 2010. The exact date of cash flow-positive, it is something that wouldn’t be wise for me to speculate on. That being said, we think we have the wherewithal to ride out this storm and still come out the winner at the other end.
Atul Bagga – Thinkequity
Let’s say if you guys did get the contract from KFC. What other dates are you going to ramp up your headcount back so you can serve that customer?
James C. Granger
I’m not sure we need to ramp up as far as we’ve ramped up before. I think we found that, I’ve seen this team do a remarkable job with the current headcount and with the current requirements that we have. That being said, were we to get a large deployment, we’d obviously need to add additional resources. But I think what this exercise has proven is that we can be more efficient as well as more effective. So we’ll only ramp up according to the goal of not only going cash flow-positive but to start showing real profits on the bottom line.
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