Digi International F3Q09 (Qtr End 6/30/09) Earnings Call Transcript

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2009-07-23 21:49:21.0

Tags: Itron, Digi International, Call Transcript, Earnings, Product Development, Business Structures, Product Marketing, Wireless And Mobility, Strategy, Research & Development, Business Operations, Finance, Marketing, Management, Seeking Alpha

Question-and-Answer Session

Operator

Yes, sir. (Operator Instructions). And our first question comes from the line of Jay Meier with Feltl and Company. Go ahead.

Jay Meier - Feltl and Company

Thanks. Couple of... though I have two questions for you, Joe. Curious to hear your views on how did you participate in the Smart Grid build out ; I was starting to hear some reports from some of the big integrators about bidding and things like that. I know that you've seen some relationships between you and other companies in this space. What do you see out there, and how do you expect Smart Grid to impact your business over the next year?

Joseph Dunsmore

Well, let's start with what's happening on the stimulus program, Jay. What we are saying is that we're finally seeing U.S. Department of Energy formalizing a program they put out on June 25. And so what we are going to see is a lot of big integrators submitting applications.

The first awards we would expect... the application period finishes in early August and you would expect to see awards coming from the Department of Energy 90 days later. So you had a question three months ago on what was happening. That's what we are seeing happened. And we would expect to see funding going to the utilities on programs and we would expect already so to speak programs in this energy space would certainly include some of the demand response programs that we are involved in.

And so that's progressing well for us. We've got... you know about the relationship with Comverge and the production program that we have in place with TXU. They are certainly working with other utilities, have programs in place, pilots going et cetera that we're participating with Comverge on.

In addition to that, we have within demand responsible working other opportunities and have other pilots in place that are not announced. Beyond that, we have the Itron partnership where we see kind of a multi-dimensional opportunity to participate with Itron in their Smart Grid program working with their OpenWay AMI networking solution. And we're making great progress with that on the energy device side.

We're working with some of the major other meter players to embed our wireless technology in the meters. And in addition to that, beyond the programs that we have going active today, we certainly have strong product developments focus and we have gateway product that's out on the market.

 

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