Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Barden - Banc of America.
David Barden - Bank of America
I guess first, I have to say I’m a little disappointed that you guys chose to defer putting out 2010 guidance. I think the visibility in this business and your ability to differentiate yourselves with laying out a view for a year ahead was one of the things that makes these companies different and underscores that difference. So I’d love a little bit more color around why you chose to do that?
Second, with respect to the one timer, Tom, we heard a lot about the margin being I guess 68.5%, but when you take that out, it’s actually below 67% and seems a little off trend. You seem to suggest that that might be related to margin softness in the international operations. So I’m wondering if you can kind of clarify, how we should be thinking about margins on a go forward basis.
Then with respect to the guidance and the one timer, by reiterating guidance and then noting that you have a $6.7 million one timer in the quarter, are you effectively lowering guidance for the year, if you could clarify that? Thanks.
Tom Bartlett
David, I appreciate your first comment, but as I mentioned, we are going to be issuing guidance in just a few months’ time and that’s when most companies issue guidance. So you cover a lot of big companies, so I’m sure you can appreciate our stance there. With regards to the one timer, we’re also now have a lot of scaling going on with obviously India and the new acquisition and the business there.
So as we continue to scale and continue to improve the profitability there, which is by the way EBITDA positive, I would add. I think you’ll see the kind of trends in gross margin as well as EBITDA that we’ve had in the past, but the increase in OpEx and SG&A quarter-to-quarter sequentially was really as a result of having the full quarter, if you will, of that deal. What was your last question, Dave?
David Barden - Bank of America
The guidance question for 2009?
Tom Bartlett
Our guidance, I mean it’s pretty broad. I mean it’s kind of interesting in terms of the tower companies actually issue guidance. I mean it’s a pretty broad span, if you will, in terms of what the guidance looks like and what the midpoints look like, because of its wideness we’re not changing guidance. We feel very strong about where we are and how we’re going to end the year so we think we’re going to end on a very strong note.
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