Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rich Valera – Needham & Company, Inc.
Rich Valera – Needham & Company, Inc.
A question on your implied guidance for your mobile data business, obviously you do have a very large backlog entering there but your overall guidance would seem to imply that you’d have some incremental sort of turns business in there as well. Can you talk about what you’re expecting in terms of any new MTS or BFT transceiver rewards in fiscal 2010 to make your overall guidance?
Michael D. Porcelain
I think we’re not expecting much more than the additional satellite airtime at this point that if you recall our BFT contract that we got, the airtime we have is only valid through March so clearly the government is going to be needing airtime in April, May, June and July to continue to run the system. Then, throughout the year at this point we’re really just sort of waiting for the outcome for the contract ceiling increase given the fact that they really can’t order anything including the satellite airtime. We expect that to happen during the year and we would expect them to place at least an order for the airtime so there’s lots of room for upside but at this point we just need that contract ceiling increase to occur and we just need to see tangible order flow.
Fred Kornberg
Simply Rich, just to kind of add the final punch line, we’re in a position right now where both the MTS and BFT contracts are topped out as I mentioned. So, really what we’re doing is on a conservative basis, as Mike mentioned, we’re just going with the satellite time which we believe the Army must increase and it should happen shortly. We’re really not counting on any additional orders until we see some action on the increases in the ceiling or extensions of our contract.
Rich Valera – Needham & Company, Inc.
Then in the past, specifically with respect to the next generation BFT, you’ve suggested that you thought it would be impractical to dual source that program due to what would ultimately be incompatible transceiver technologies. Just looking at the language in your 10K it seems to be suggesting strong preference by the DOD to in fact dual source both the BFT and the MTS. Has your positioned changed on what you think the likely outcome is there with respect to whether that will ultimately be a dual or single source contract?
- To read the full transcript on Seeking Alpha, click here »
