Integral Systems, Inc. F4Q09 (Qtr End 09/27/09) Earnings Call Transcript

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2009-10-21 03:55:18.0

Tags: Call Transcript, Earnings, Question, Integral Systems Inc., GPS, Government, Handhelds, Operational Accounting, Consumer Electronics, Personal Technology, Hardware, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator instructions). Our first question comes from the line of Dick Ryan with Dougherty & Company. Please proceed with your question.

Dick Ryan – Dougherty & Company

Thank you. Bill, just a couple more housekeeping items on the assumptions. What kind of tax rate are you looking at for ’10?

Bill Bambarger

About 36.5%, Dick.

Dick Ryan – Dougherty & Company

Okay. And I think you mentioned in your narrative, but I didn’t catch, did you talk about capital expenditures?

Bill Bambarger

I did not, but our CapEx for 2010 will be pretty much in line with what you usually see, between $3 million and $4 million.

Dick Ryan – Dougherty & Company

Okay.

Bill Bambarger

And most of that is – most of that’s just typical computer refresh and things like that.

Dick Ryan – Dougherty & Company

Yes, okay. In your top line revenue, is it primarily driven from backlog or do you – are you including some new business and new business awards in that number?

Bill Bambarger

Well, a lot of it is driven from our backlog. We are not very aggressive with regards to GPS or any other new contract awards. We do have some revenue in there for new contract awards, but only where we felt were – they were the most probable and they are heavily factored.

Dick Ryan – Dougherty & Company

Okay. And GPS, I think you said end of the year, was that the end of your fiscal year or calendar '09 when that is anticipated?

Bill Bambarger

Well, right now the government is saying November or December I believe. Quite frankly, we are probably expecting something after the beginning of the calendar year. As you know, that’s totally out of our control, but that’s the latest expectation that we’ve heard.

Dick Ryan – Dougherty & Company

Great. Thank you. I’ll get back in line.

Bill Bambarger

All right. Thanks, Dick.

Operator

(Operator instructions). Our next question comes from the line of Bonnie Wachtel with Wachtel & Co., Inc. Please proceed with your question.

Bonnie Wachtel – Wachtel & Co., Inc.

Thank you. Three questions this morning. First, on the government division and I maybe referring back to the old organization because I lost track a little bit of the new organization, although it sounded promising. What percentage of your government business approximately is made up by the two programs, RAIDRS and CCS-C?

 

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