American Science & Engineering, Inc. F2Q10 (Qtr End 09/30/09) Earnings Call Transcript

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2009-11-05 18:26:11.0

Tags: Call Transcript, Earnings, American Science & Engineering Inc., Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, Mr. Fabiano. (Operator instructions) Our first question comes from Edward Marshall from Sidoti. Please proceed.

Edward Marshall – Sidoti & Company

Good morning everyone or good evening. My first question – I did this last conference call as well. The delivery of new products that you have coming up, the MobileSearch and the Sentry Portal, my first question centers on the gross margin, you know as you start to deliver these products, should we expect to see any pressure on the gross margin that we have seen with similar rollouts in the product – in other products?

Ken Galaznik

Ed, as you know, we don't break out our margins by product line. It really would be very difficult to comment on that. But it’s a unique product. It is a very exciting product, and we will see where that takes us.

Edward Marshall – Sidoti & Company

I mean we should assume there is some learning curve issues with the new rollout, of the new program?

Anthony Fabiano

There is always some learning curve with new products. The more that we bring to market the more we learn how to reduce learning curves.

Ken Galaznik

If you look back in prior years, we have talked about learning curve issues during those days and it did impact us. We are bringing out at that time that was a larger more complex issues related to that product that are more complex than what we were seeing now, but to Anthony's point I mean to say we wouldn't experience learning curve issues would be pretty bold on our part.

Anthony Fabiano

(inaudible).

Ken Galaznik

We have been fortunate so far, we have done our learning curves one time, and that has been a nice experience for us.

Edward Marshall – Sidoti & Company

And I guess, of course, your product mix is a little bit better now than it was another in other rollout periods as well?

Anthony Fabiano

Correct.

Edward Marshall – Sidoti & Company

And then the next question, I guess, is the splits of the orders that you guys have taken in. Can you kind of – is there any way to break out the equipment versus the services that were booked in the quarter from dollars or revenue standpoint, dollar standpoint?

Ken Galaznik

Anthony just went through the summary of that breaking those out as far as (inaudible).

 

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