Globecomm Systems, Inc. F4Q09 (Qtr End 06/30/09) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-09-10 11:07:31.0

Tags: Contract, Call Transcript, Earnings, Infrastructure, Government, Vertical Industries, Seeking Alpha, Globecomm Systems

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from the line of Jim McIlree – Collins Stewart.

Jim McIlree – Collins Stewart

The services guidance for fiscal 2010 is $31.25 million per quarter which is a big step up from what you did in the June quarter. Where is that extra coming from? Where is that extra $5-6 million coming from? Is that a contract that is signed or is that just something you are pretty confident about that is going to hit during the year.

Keith Hall

The combination of a full quarter of one of our new acquisitions, Telaurus, and some incremental organic growth of the core business.

Jim McIlree – Collins Stewart

Are most of the contracts then for, let me say it a different way, do you have any major contracts you need to resign in fiscal 2010 in order to hit that 125?

Keith Hall

There are renewal contracts that we have come up yearly with the government that we have had great success. I will say in the last couple of years in paying those renewals and even in expanding those contracts during those renewal periods.

Jim McIlree – Collins Stewart

On the infrastructure side, can you give an indication of how much of the infrastructure was military in fiscal 2009? Let me say government instead of military, and that would include U.S. as well as international governments as well as the UN and what you think it will be in fiscal 2010, again total government as a percent of that $90-100 million number?

Keith Hall

In fiscal 2009 it was approximately 66% and fiscal 2010 we are looking at approximately 60%.

Jim McIlree – Collins Stewart

So a slight, but not dramatic, increase in economic activity driving the commercial business. Is that a fair way to look at it?

David Hershberg

Some of the contracts we have been facing for a long time we have got some indication they are finally going to come mainly in the media area.

Operator

The next question comes from the line of Mark Jordan – Noble Financial.

Mark Jordan – Noble Financial

Back in November 2008 you announced a $27 million multi-national organization infrastructure contract. At that time you said you didn’t expect visibility of revenue in the fiscal year which was fiscal 2009. What is the status of that contract and has that now become more visible? Number two, could you talk about the overall pipeline you see on the commercial infrastructure side?

 

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
advertisement