CSG Systems International Q3 2009 Earnings Call Transcript

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2009-10-27 21:24:16.0

Tags: Software, Revenue, Analyst, Call Transcript, Earnings, Csg Systems, Citigroup Inc., Tools & Techniques, Operational Accounting, Free Trade, Management, Finance, Seeking Alpha, CSG Systems International Inc.

Question-and-Answer Session

Operator

Thank you sir. (Operator Instructions). Our first question comes from the line of Shyam Patil with Raymond James. Please go ahead.

Unidentified Analyst

Good afternoon. This is Varun Chedda filling in for Shyam.

Liz Bauer

Hi there.

Unidentified Analyst

Could you just give us an update on DISH renewal?

Peter Kalan

Sure. This is Peter. Discussions and negotiations with the management team of DISH continue pursuing a multi-year deal. I don't have any specifics to give you on expected timing that we are working hard and continuing in those discussions and negotiations.

Our goal is to build upon the 12 year relationship that's 12 plus year relationship that we have had with DISH, that they've grown their business. And we're really focused on being a valued and trusted partner going forward with them. And I'll tell you I'm confident that we can be successful as we work on this during the remainder of this fourth quarter and remain confident that we can be successful in achieving a multi year deal. We've been successful and continuing to bring new products to them over the recent years and continue to support them from an operational and business perspective this year and we have confidence as we finish out this year.

Unidentified Analyst

All right got it. So, could you just comment briefly on your source (ph) for the gross margins, how should we think about that going forward?

Randy Wiese

Yeah, this is really Randy. I think if you look at this -- I think I mentioned this in past quarters the software can be lumpy at times on the revenue side. So, I think if you look over the last several quarters it's ranged if you include this quarter it's been in the low 20s up to the 40s. It's highly depended upon the level of software market software revenues.

So I think as you look in your model probably that range is what you are going to have to look at.

Unidentified Analyst

Got it, thank you.

Liz Bauer

Thanks.

Operator

Thank you and our next question comes from the line of Ashwin Shirvaikar with Citigroup. Please go ahead.

Ashwin Shirvaikar - Citigroup

Thanks hey guys.

Peter Kalan

Hey.

Randy Wiese

Hi Ashwin.

Liz Bauer

Hi Ashwin.

Ashwin Shirvaikar - Citigroup

My question is do you guys see any reason why free cash flow in 2010 should not be higher than in 2009?

 

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