Technitrol Inc. Q3 2009 Earnings Call Transcript

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2009-11-02 18:24:12.0

Tags: Call Transcript, Customer, Earnings, Modeling, Technitrol Inc., Research & Development, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Joe Wittine from Longbow Research.

Joe Wittine - Longbow Research

Hi, good evening.

Jim Papada

Hello.

Drew Moyer

Hello.

Joe Wittine - Longbow Research

This is Joe, calling in for Shawn Harrison. First question, just a real quick question on the OpEx line, you mentioned that end of this $1.2 million, that you don’t expect to recur just for modeling purposes, should we be modeling, I guess the current run rate minus $1.2 million or is there anything else going on that we should not going ahead?

Drew Moyer

That’s a little bit of an awkward question, but I think what we said in the release pretty much speaks for itself and you need to decide that.

Joe Wittine - Longbow Research

I guess as a quick follow-up here on the handset customer. I recognize you probably won’t mention who the customer is. Just curious, is it a long term customer or someone that was from LK or was it more recent customer that came over with Sonion?

Drew Moyer

We didn’t have any customers for antenna devices that came with Sonion, because Sonion wasn’t in the antenna business.

Joe Wittine - Longbow Research

Okay, thanks for that and then I mean you gave pretty good commentary that it’s going to be a multiyear or pretty long transition, if in fact it does happen. I mean how do you expect it to happen, linearly I guess right now, I mean anything else you can add on that?

Jim Papada

I would say that, we’ve seen some activity on the part of our customer and we’ve seen some early setbacks on the part of the customer and its manufacturing sources to attempt to successfully pull this off and as a matter of fact, we’ve had to help them out a little bit or more than a little bit. We have had to help out with respect to some issues that have already arisen.

So again, it remains to be seen whether and to what extent this will be successful and frankly, as I mentioned, we’re proceeding as though this was absolutely going to be successful and concentrating our efforts in directions that we weren’t necessarily concentrating in before and I think that overall whether they are successful or unsuccessful we are going to end up here in a much better position than we started out in.

 

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