Raytheon Company Q2 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-07-23 11:25:43.0

Tags: Raytheon Co., Backlog, Call Transcript, Earnings, Microsoft IIS Server, Credit Suisse Group AG, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And your first question comes from the line of Robert Spingarn with Credit Suisse.

Robert Spingarn - Credit Suisse

A couple of quick things. Bill, with regard to the backlog we knew KEI would come out. Is there anything else based on the changes down in Washington that would remove from the backlog over the second half of the year?

Bill Swanson

The only thing that might be in there would be FCS but we've looked at what's happening on the program given our sensors and missile systems, and the ground systems work we're doing, we believe all of that stays basically the same. The vehicles are moving around, so you still need to put stuff on them. So my answer would be there might be some movement there, but it'll be in the noise. We probably won't even see it.

Robert Spingarn - Credit Suisse

Okay. Can you give us a size, perhaps size of the FCS in the backlog for us?

Bill Swanson

I don't have that off the top of my head. I don't break it out. The problem is we have spin outs and things that are part of it. If you look at, NLOS, it's one of the systems that goes in there. I don't even know if it's in the FCS line off the top of my head. We can get you some kind of ballpark of what's there.

Robert Spingarn - Credit Suisse

All right, that would be helpful. And then on IIS based on the margins in the first half of the year, how do you get to the target range that you show in the slides for the full year?

Dave Wajsgras

Yeah. This is Dave. From an IIS perspective the cadence of the margin is pretty much lined up with what we saw in 2008. IIS does have some operational improvements expected in the second half, and you'll recall that just from an overall perspective, that's the Group that primarily is responsible for cyber security, and we continue to invest in that area as well.

Robert Spingarn - Credit Suisse

Okay. And then just Dave as you talk about cadence in the second half of the year, you have more days in Q3, but clearly based on your guidance more revenue in Q4. Could you walk a little bit through the mechanics of that?

Dave Wajsgras

Yes. In Q4 is always our stronger quarter from a cadence standpoint. In the guidance, we provided in the appendix we are just getting a little more precise relative to Q3 and Q4. There’s nothing in particular going on there.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here