Amphenol Corporation Q1 2009 Earnings Call Transcript

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2009-04-17 04:31:19.0

Tags: Amphenol, Acquisition, Deutsche Bank AG, Call Transcript, Aircraft, Earnings, Mergers & Acquisitions, Corporate Law, Aerospace & Defense, Investment, Finance, Business Operations, Manufacturing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Brian White - Collins Stewart LLC.

Brian White - Collins Stewart LLC

If you could talk a little bit more about the acquisition and maybe when it closed exactly. Was it some time late in March?

Adam Norwitt

The acquisition closed in late March.

Brian White - Collins Stewart LLC

And in terms of - I'm not clear exactly - what market does this get you into that you're not into today?

Adam Norwitt

Well, I think Times Microwave has a very complementary product position with us. Certainly, they are on programs that we are also on in the military aerospace market, but in a very complementary fashion. They have the industry leading RF interconnect assemblies, which are a value add product in addition to the connector and the cable that goes along with it. They have a very strong position in airframes, where we have traditionally been very strong on the modules and the avionics platforms. And so together it puts us in a very, very strong position across the entire - in the aircraft example, across the entire aircraft portfolio.

And on the telecom side, Times Microwave has a strong position especially in indoor coverage solutions, which is certainly a growing market in the wireless infrastructure market and one where we have participated, but this certainly augments our participation there.

Operator

Your next question comes from Carter Shoop - Deutsche Bank Securities.

Carter Shoop - Deutsche Bank Securities

First, on the 141R, I thought we were going to disclose what the transaction-related costs were in the quarter from acquisitions. Are we not going to do that?

Diana Reardon

Well, we did have some costs in the quarter. We didn't think they were significant enough to disclose as a separate line item, but if you were to look at the segment schedule and look at the headquarters line, you see some increase in expenses there compared to last year and I would say that that increase relates to those expenses.

Carter Shoop - Deutsche Bank Securities

And then in regards to the company's ability and desire and capacity for acquisitions on the immediate term basis, obviously we've levered up a little bit here for the acquisition. Do you think that we're going to take a few quarters to digest this sizing acquisition or do you feel that the overall management bandwidth and capacity on the balance sheet is sufficient for future acquisitions here in the next couple of quarters?

 

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