Syniverse Holdings Inc. Q3 2009 Earnings Call Transcript

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2009-11-02 19:09:08.0

Tags: Avondale Partners LLC, Call Transcript, Earnings, Syniverse Holdings Inc., Mergers & Acquisitions, Cellular Phones, Investment, Finance, Consumer Electronics, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Mr. John Bright of Avondale Partners. Please proceed.

John Bright Avondale Partners

Thank you. David, it looks like there's three events taking place that are changing your guidance, the roaming trends, ITHL as well as India. Can you tell me what the order of magnitude of that is relative to your 460 guidance previously and then if you wouldn't mind ranking those within that? That's question one.

David Hitchcock

Sure, John. If I look at the impact from India, that would be roughly $7 million to $8 million. If I look at the impact of what I'll call the core ITHL business across the Asia region, it would be $4 million to $5 million, and then the base business due to the tempered seasonality we saw in the third quarter and expect to continue into the fourth quarter roughly $4 million to $5 million as well.

John Bright Avondale Partners

Okay. Then my second question goes around the assumptions for your guidance in the fourth quarter. Did I hear you correctly of saying that overall unit growth in Q1 was 6%, Q2 was 7% and then Q3 was 5%? Is that accurate?

David Hitchcock

That's correct for combined CDMA and GSM clearinghouse volumes and remember John that those are normalized for the impact of the Sprint/Alltel and our insourcing in the Verizon acquisition of Alltel, so we could get a clean picture year-over-year.

John Bright Avondale Partners

Okay, so are those good unit numbers to think about in a normalized total basis?

David Hitchcock

Yes. Given the current macroeconomic environment, absolutely.

John Bright Avondale Partners

Okay. It looks like that we've seen a slowdown in Q3 and that's reflected in your guidance. What are you assuming then for Q4 would be my follow-up question?

David Hitchcock

For Q4, we would be in roughly that same range. We have not included an impact in the fourth quarter. We have not assumed that we're going to see a pickup in the fourth quarter, John.

John Bright Avondale Partners

Okay. Thank you.

Operator

Your next question comes from Amir Rozwadowski of Barclays Capital. Please proceed.

Amir Rozwadowski – Barclays Capital

Thank you very much. David, it seems though over the course of this year you've done a fairly strong job in terms of reducing your overall cost versus the initial plan that you had set out. If we think about sort of the rollover into the next fiscal year, how should we think about sort of your spending priorities? Is there a sense that OpEx at these levels is sustainable or should we think about a pickup in OpEx next year?

 

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