Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Mr. Rich Valera. Sir, you may ask your question.
Rich Valera - Needham and Company
On the defense and space business, just wondering how we should thing of the base line of this business X the B-2. I think you got around $36 million of revenue in 2009 from that program. Should we think if 2010 starting point as sort of 2009 minus $36 million or is there reason that we should think that base line should be higher?
Paul Domorski
Well, as I said it earlier. I’ll go first and let Gary add to this, Rich. We are actively seeking to move some of that backlog that we have in today into the fourth quarter and in to early quarters of next year. In addition to that, we are actively working on replacement revenue for that. As I said in my other comments, it will take sometime. So, I certainly wouldn’t assume that, that it would be forecast minus 36, but certainly there will be some disruption.
Gary Shell
It’s going to be something less than 36, may be half of that or something like it, and that’s all depended on other efforts. I think, may be half of that number would be a good factor to condition your D&S forecast.
Rich Valera - Needham and Company
Looking at your C&T segment and specifically the revenue from newly acquired businesses dropped quite sharply from $19 million to $14 million sequentially. Can you give us a little color on what’s going on there, and how you see the prospects for those acquired businesses into the fourth quarter and beyond?
Gary Shell
That’s more of a principal factor and that was more of a timing issue. We had on one particular major customer that under firm orders stretched out some aero deliveries, that’s under the new businesses. We've also seen of course some stretch out on the legacy businesses. So they are down what number, as I mentioned, is almost exactly the same that all the big avionics and airframe guys are reporting this particular quarter, something in the 20% range. So it looks like the bigger part of that drop, especially among the new business, was the timing issue that we believe will get corrected beginning in Q4 going forward.
Rich Valera - Needham and Company
So should we think that Q4 looking similar to Q2, or may be not quite back to that level?
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