Question-and-Answer Session
Operator
(Operators Instructions) Your first question comes from the line of Matthew Robison - Pacific Growth Equities.
Matthew Robison - Pacific Growth Equities
First, Marty, you mentioned the state and local government, you did not really say much about the outlook for RFS although you described the wins. How you see the business for scanning receivers in the few months?
Martin Singer
Well, first, thanks for joining the call Matt and also thanks for the invitation to speak at your conference in March at Red Bush in New York.
What we see is continued strength in that business. We doubt if it will be a growth year for us, but the first quarter is going along reasonably well in scanning receivers and as we have discussed before on these calls there are certain aspects of a recession that are not necessarily bad for scanning receivers. In other words, if the CapEx budgets are for major operators decline during a period of financial pressure then the engineering teams for those carriers are put in a position of trying to get more out of less or more of the same. They try to optimize the performance of the existing cellular networks, and when they do that they need tools, and those tools are the types of test equipment sold by a Knight and SwithQual and [TEMs] and others and we provide scanning receivers to those vendors.
Matthew Robison - Pacific Growth Equities
Okay. You mentioned the Motorola sales have been so strong in the fourth quarter. Should we expect that to continue or would we likely see some weaknesses associated with what you are seeing for this season with state and local government?
Martin Singer
It is a little bit different. For example, one of the areas of strength in the fourth quarter was Canopy and then we also get some Motorola Israel business and that has to do with their projects for different companies with intelligent devices on tracks and so on at communication systems, LMR systems for those purposes.
Canopy has been a beneficiary of the delay in WiMAX, and while there are economic pressures on those types of operators, we will see more Canopies throughout the rest of the year. One thing I will tell you is that there were some projects that were delayed. For example, we talk last year about Axtel where it rolled out initially as sort of data only network and then had to be refreshed as a data and voice network. We see those issues getting resolved and we think that networks like Axtel that were in that situation will start to deploy and utilize the antennas.
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