TeleCommunication Systems Inc. Q2 2009 Earnings Call Transcript

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2009-07-30 18:41:19.0

Tags: TeleCommunication Systems Inc., Call Transcript, Text Messaging, Earnings, Text Messaging/SMS/MMS, Cellular Phones, Consumer Electronics, Personal Technology, Online Communications, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). And our first question will comes from side of Scott Sutherland from Wedbush Morgan. Your line is now open.

Suhail Chandy - Wedbush Morgan

Thank you. This is Suhail sitting in for Scott. Congrats on the quarter. A quick question really on the pipeline, you know, what are typically in average size of deals you're seeing especially in commercial systems, and also government systems?

Tom Brandt

Well, the range of deal side for this company is very wide, you know, where we closed in commercial; a Comcast deal that's very, very, large over a very long period of time, where we sell a contract to modify our Internet gateway application technology in a carrier, that's a whole different order of magnitude. We are not a company that lends itself to average deal sizes. We've got a wide range of customers and deliverables that helped balance sheets, [other] and produced a soother and smoother set of revenue and profit flows over the course of time, but it's not something that's easily averaged into a particular deal profile.

Maurice Tose

As we said on the call, we had several multi-million dollar deals, but we have a large number of multi-million dollar and we have several hundred thousand dollar deals, and it covers the gamete in both the government and in the commercial sales.

Suhail Chandy - Wedbush Morgan

One quick question on LocationLogic, any other kind of incremental opportunities or synergies that you see apart from the ones that you kind of mentioned?

Maurice Tose

Yes. We are working them, and we are seeing a number of opportunities that we would not have seen otherwise, which as we said we are very excited about the acquisition and its integration into the company and what it means to us on a going-forward basis.

Operator

Your next question will come from the side of Tim Quillin from Stevens Incorporated. Your line is now open.

Tim Quillin - Stevens Incorporated

Maurice, you said something important in passing and I just wanted to make sure I got it straight, but the $80 million to $90 million that you expected from your text messaging customer, what were the details on that. And my understanding you haven't signed a deal yet, you're still in negotiation. So what gives you the comfort that that's going to be the number?

Maurice Tose

Well, a couple of things, and that number doesn't represent just text messaging. It's our messaging revenue base, which is, as we said, its maintenance, its platform sales, its software, and it includes our wireless internet gateway as well as our text messaging software.

 

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