Monotype Imaging Holdings, Inc., Q4 2008 Earnings Call Transcript

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2009-03-03 07:50:38.0

Tags: Call Transcript, Needham & Co., Earnings, Monotype Imaging Holdings Inc., Printers, Hardware, Peripherals, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions) Thank you. The first question comes from the line of Richard Davis from Needham & Company. Please go ahead.

Richard Davis - Needham & Company

Yes, one question first on the printer business, consumer versus business side. We have heard and our thoughts were that the consumer side was falling much more rapidly than the business side, one is that your expectations?

Doug Shaw

Richard this is Doug. 100% of our printer related revenue comes from the business side, so it's really hard for me to talk to what's going on in the consumer side. What I can say is that in Q4, what we saw was roughly a 5% decrease in units versus Q4 of the prior year. And then in our Q1, we are seeing approximately 7% to 8% decrease in units, well when we give guidance of 10% to 20% for the full year. It feels like that taking into account inputs that we are getting from industry analysts, from customers, we actually just this morning, got some more information from another industry analyst who is forecasting on the business side of laser printers, a 5% discount for the year.

But I think your general point is probably right on that the consumer printers are suffering more than business printers. But we have real data on the business side; the consumer side is really what we read in the papers.

Richard Davis - Needham & Company

And then on the debt side the coverage ratio, is it I was trying to remember I think it's three times is that that the correct number, at what level of EBITDA do you get to, where the crossover point is three times versus not three times, we kind have been in the background, but I just want to make sure our math was right?

Scott Landers

Richard, its Scott the ratio is 2.75 beginning in March and it continues at that level and it does not decrease from there. If you take our outstanding debt and what it would be at the end of the year and apply the ratios is about a $35.5 million EBITDA number.

Richard Davis - Needham & Company

That's right, okay, cool. I let some other people ask some questions, Thank you.

Operator

Thank you the next question comes from Sterling Auty from JP. Morgan, please go ahead.

Sterling Auty - JP Morgan

 

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