Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Chris Quilty - Raymond James & Associates.
Chris Quilty - Raymond James & Associates
Just looking at the satellite net ads in the quarter, do you have a sense of where you are actually seeing gains or net ads by vertical markets?
Marc Eisenburg
Sure Chris. We are seeing ads, specifically in the heavy equipments, we were seeing some churn especially on the transportation side, trucking but overall, we’ve seen a slow quarter because last year OEMs 2008 production was ramping in the middle of the year, so when demand fell of we saw large building of inventory that we’ve been battling through all year.
Even though the OEMs have reported sales as low as 60% we are down in activations even more than that, since to activate their units at production or most of them do. So, our OEMs adds have fallen even more than that. As they run out of their inventory, we would expect the opposite effect.
Chris Quilty - Raymond James & Associates
We’ve seen positive announcements coming out of, DRR (ph) hiring more people, Caterpillar ramping production, your sense is, may be you work through those inventories in the fourth quarter and by first quarter you are back to more of a normalized demand level.
Marc Eisenburg
Yes, I think what we are seeing is, what we have been told it’s different for each OEMs, each one is built their own levels and are working through it. So, I don’t know that they all click in the same day, but it should have the opposite effect. The inventory is out and then they start building it up again. Again, they activate us at the line and they continue to test the units.
Chris Quilty - Raymond James & Associates
Okay and do you know, are your OEM customers continuing to do the engineering work to expand the number of models, into which the Orbcomm product is integrated or was that process stopped, back when production started to slow?
Marc Eisenburg
What we’ve seen is there’s been less and less intros of new models, but we are not aware that they’ve stopped putting us on the new models.
Chris Quilty - Raymond James & Associates
Okay. And a question on the insurance settlement. I think you guys finally were able to submit that back, what in the late summer early fall pipe time frame, and typically you would expect to add a 90-day window. Does that mean we are likely to see some or all of those announcements by the end of the year here?
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