Question-and-Answer Session
Operator
(Operator Instructions). We’ll go first to Steve Levenson with Stifel.
Steve Levenson - Stifel Nicolaus
A question about contract timing, have you seen anything either directly or through the primes being held up or slowed down? I know you spoke about the radar contract, I don’t know if that was exclusive or if there is more?
Mark Aslett
Today, that's really the only one that we’ve seen, Steve. We do believe it is just a matter of timing, our customers have spoken to the governments and we believe it is going to happen next quarter and the program itself is rock solid. So we think it's just a government first quarter timing delay.
Steve Levenson - Stifel Nicolaus
And this is one where you are the sole source for the embedded computers are taken?
Mark Aslett
That is correct
Steve Levenson - Stifel Nicolaus
Okay, thanks. Second, did you have any 10% customers during the quarter and are you expecting any?
Bob Hult
Through this current fiscal year.
Mark Aslett
We did see. We actually had four, 10% or better customers this quarter.
Steve Levenson - Stifel Nicolaus
Are they somebody that you name in the 10-Q or that you name were --
Mark Aslett
They are usual suspects. Yes.
Bob Hult
Therein actually nine of them, but it’s three of the big ones and one of the tier-two primes.
Steve Levenson - Stifel Nicolaus
And you expect that to continue through the year?
Mark Aslett
That’s actually a large number in a given quarter. We always seem to have two or three.
Steve Levenson - Stifel Nicolaus
Okay, and you talked about new chips driving the business on semiconductor side. Is that new chip design new geometries or just --?
Mark Aslett
Yes.
Steve Levenson - Stifel Nicolaus
May be you can explain it better than I can ask it?
Mark Aslett
No, I think it is basically customers looking to migrate to high technology levels meaning reduce line widths to improve technology in mobile phones, DVDs and Video games.
Operator
We will go next to Mark Jordan with Noble Financial.
Mark Jordan - Noble Financial
Good afternoon, everyone. First, I’d like to just go back and review the model that you just talked about in terms of adjusted EBITDA margins of 17% to 18%. If you were to look at that on a GAAP basis back out, could you say what would be generically on a percentage basis, what stock comp would run and also what DNA would run? Because I have to get kind an off margin?
- To read the full transcript on Seeking Alpha, click here »
