L-1 Identity Solutions Q3 2009 Earnings Call Transcript

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2009-10-28 23:27:08.0

Tags: L-1, Backlog, Call Transcript, Earnings, RBC Capital Markets, Operational Accounting, Finance, Seeking Alpha, L-1 Identity Solutions Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Thank you. Our first question is coming from Daniel Meron with RBC Capital.

Daniel Meron - RBC Capital Markets

Thank you, hello Bob and Jim.

Robert LaPenta

Hi, Dan.

Daniel Meron - RBC Capital Markets

Hey. So. Bob I am trying to basically understand the difference between the growth on the backlog and the low outlook for next year, is this that basically we are going to see slower implementation of orders in Q as in flow slower into the revenue here?

Robert LaPenta

No, again I should mentioned we have not completed our planning target for next year, but we wanted to get some guidance out there based on the backlog of the individual units and what we saw is deliverable out of that backlog next year.

So, we modeled it looking at the potential new business and what they are going to be delivering on drivers' license we made some projections on passport. But relative to new business, the only new business we included in that forecast for next year was the PSA program, that I talked about, where we think we are in good position and that will generate about 10-15 million of revenue. When it comes to the other businesses, we basically forecasted no material new wins in the Intel Group. And so we forecasted modest organic growth for the Intel Group.

When we got to buy our metrics, we forecasted that they will continue to perform on existing programs, we would complete, substantially complete our program in the Middle East and that would require additional peer and high deliveries next year for that customer. That's part of backlog. And we assumed a measure of win in this Latin American opportunity that we think, we are well positioned for.

Enrollment, we did not factor in any additional wins and we basically rolled out their run rate for the fourth quarter of this year. Again, no major new state wins, and there are couple of competitions coming up, one is in Massachusetts and one is in Pennsylvania.

So, our guidance we think is very reasonable and our cash flow and EBITDA, I think we feel relatively comfortable that we are going to achieve it.

Daniel Meron - RBC Capital Markets

Okay. Thank you good luck.

Operator

Our next question comes from Paul Coster with JPMorgan.

Paul Coster - JPMorgan Securities Inc.

Hi, good morning. I've got actually three very quick questions. First of all, on the DMV business, how does that ramp during current year time, is sort of back end loaded?

 

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