Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tim Quillin – Stephens, Inc.
Tim Quillin – Stephens, Inc.
With regards to the Government business we saw a quarter to quarter decline in revenue for the first time I can remember. It’s a little bit hard from the outside to know exactly when your deliveries are scheduled and so I’m just wondering if you could give us a sense of how much Ray, G-Boss, BETSY, I guess particularly BETSY is impacting the timing of revenue, how it impacted 1Q to 2Q and what the second half looks like versus the first half. What kind of order activity you expect on the Government side in 3Q?
Bill Sundermeier
As we mentioned before we’ve been level loading our factories especially in Portland because of this quality of Ray systems that we’ve had out there and the level loading I expect to continue the second half of this year. The demand we certainly have a large backlog and we’re pushing them out as fast as the Ray group would like them and want to deploy them. This most recent order that we had kind of reiterated the vast majority of that will probably land in the first half of 2010. I think you’re going to continue to see us in the same kind of space here for the remainder of the year for revenue. Whether or not it’s up 5% or down 5% it really depends on some of the costs and timing of those orders.
Operator
Your next question comes from Jonathan Ho – William Blair & Company
Jonathan Ho – William Blair & Company
On your revised guidance, can you maybe give us a little bit more color by segment in terms of your expectations and maybe a breakout of I guess how it impacts by segment the reduction.
Earl Lewis
I don’t have that handy but basically the number one delta from our original guidance is our Thermography business which continues to disappoint in that we keep thinking that it really should be returning and getting stronger and yet it really didn’t in Q2. Two things in Thermography in Q2, one is you noticed that the backlog actually went up and when you adjust for currency we were down I think 3% or 4%, I forgot the exact number.
When you include the backlog and currency the order rate wasn’t down anywhere near what it was in Q4 compared to Q4 a year ago or Q1. The rate seems to be improving but I think we feel at this point we’d rather say that that business is going to continue to be weak for the balance of the year.
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