Ladies and gentlemen, thank you for standing by. Welcome to Comtech Telecommunications Corp’s second quarter fiscal 2009 earnings conference call. (Operator instructions) As a reminder, this conference is being recorded Tuesday, March 10, 2009. I would now like to turn the conference over to Ms. Luria Soleno [ph] of Comtech Communications. Please go ahead ma'am.

Thank you and good morning. Welcome to the Comtech Telecommunications Corp. conference call for the second quarter of fiscal year 2009. With us on the call this morning are Fred Kornberg, President and Chief Executive Officer of Comtech; Michael Porcelain, Senior Vice President and Chief Financial Officer; Jerome Kapelus, Senior Vice President Strategy and Business Development; and Frank Otto, Senior Vice President Operations. A news release on the company’s results was issued yesterday afternoon. If you have not received a copy please call me and I’ll be happy to send it to you. Before we proceed, I need to remind you of the company’s Safe Harbor language. Certain information presented in this call will include but not be limited to information relating to the future performance and financial condition of the company. The company’s plans and objectives, the plans and objectives of the company’s management and the company’s assumptions regarding such performance and plans are forward looking in nature and involve certain significant risk and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company’s Securities & Exchange Commission filings. I am pleased now to introduce the President and Chief Executive Officer of Comtech, Fred Kornberg. Fred?

Thanks Laurea, and good morning everyone, and thank you for joining us today for our fiscal 2009 second quarter earnings call. Yesterday afternoon we reported second-quarter results that were particularly impressive considering the further deterioration in the global economy since we last spoke. I attribute our solid second-quarter results to our strong leadership position in the markets we serve, the differentiated and compelling value of our products, our strong position on critical and expanding US government programs, and the continuing benefits we are generating from the Radyne acquisition. Because of the more difficult business environment in which we are currently operating, we intend to provide today – provide you with a through business outlook for the remainder of fiscal 2009 as well as our initial broad perspective relating to fiscal 2010. Let me first turn to Michael Porcelain, our chief financial officer, who will provide an overview of our financial results for the second quarter of fiscal 2009. I will then provide a business and financial guidance update. Mike?

Thanks Fred. Good morning everyone. As Fred mentioned, our Q2 results were solid. Let me review the results of the second quarter of fiscal 2009. I will start with the top of the income statement and work my way down. Q2 of fiscal 2009 net sales were $143.9 million, which represents a decrease of 5.3% versus Q2 of fiscal 2008. Our results this quarter reflect incremental sales in all three of our business segments associated with the Radyne acquisition, and core organic growth in both our telecommunications transmission and RF microwave amplifier business segments, all of which was offset by an expected significant decrease in sales in our mobile data communications segment. In our telecommunications transmission segment, net sales for the second quarter of fiscal 2009 were $65.9 million. This represents an increase of $19.3 million or 38.4% from Q2 of FY 2008. Despite difficult economic conditions and some recent softness in commercial bookings, sales of our satellite earth station products increased due to incremental demand, particularly for our modems, which incorporate our DoubleTalk Carrier-in-Carrier technology. Sales also increased due to the inclusion of sales of Radyne-branded satellite earth station products. Sales to the US Government were and remain strong. As expected, sales of our Tiernan branded video encoder and decoder products, which we acquired from Radyne very weak. Based on what we see, sales of our video products are likely to decline from Q2 levels for the remainder of our fiscal 2009. We expect that the second half of fiscal 2009 will be more difficult than the first half. Given the recent softness and bookings that we have experienced, we're taking a cautious approach to the remainder of fiscal 2009. Accordingly, we anticipate quarterly satellite earth station product sales in Q3 and Q4 of fiscal 2009 to be lower…

Thanks Mike. I will begin with an update of our telecommunications transmission segment. Our satellite earth station product line delivered solid results despite some moderate softness in the second quarter bookings area. Despite of the weak global economy, the results delivered by this product line in the first half of fiscal 2009 demonstrated very clearly the powerful franchise we own. Radyne, now fully integrated into our existing satellite earth station business, has made us even stronger from every perspective. We are positioned today as one company with the widest array of satellite earth station products to meet the varying needs of both our government and commercial customers. We believe that demand from the government for our satellite earth station products continues to be strong based on our ability to enhance bandwidth efficiency in an environment where the government continues to face the challenges of meeting the satellite bandwidth needs of its various missions, and based on our various compelling solutions to maximize bandwidth without the cost of leasing additional transponder space. This we do through the use of our flagship government modems, the model SLM-5650A, which now offers our Carrier-in-Carrier technology. In our Over-The-Horizon (inaudible) microwave product lines, we remain the de facto go to supplier of worldwide leading (inaudible) data communication systems. As we sit here today, our two North African opportunities continue to make progress, albeit slowly. We are seeing a lot of stops and stops [ph] based on normal course of business negotiations, relating to project scope, budget, and timing. Although the economy is of some concern, we believe that these issues are secondary and that these orders remain a matter of timing. We are also working with a number of other countries interested in our products. And as we have reported in the past, we have…

Thank you Mr. Kornberg. We will now begin our question and answer session. (Operator instructions) Our first question comes from Mark Jordan at Noble Financial. Mark Jordan – Noble Financial: Good morning Fred. The question first on RF. You stated that you saw that lower in revenue. Is that making – is that also include the assumption that Q2 with a large award that you had last week that is not incorporated in it, because I thought you said in the discussion that that could grow if Q2 comes through as expected.

Yes, I think Mark the only thing that we're trying to say here is losing my voice here – the only thing that we're trying to say here is that we are being very, very cautious and because things are very, very cloudy right now. We have been talking to ITT [ph], and we're not getting a very comfortable feeling that we really are getting to know when those orders are going to recur. I personally believe they will occur, but we just don't know when. Mark Jordan – Noble Financial: Okay. Looking at the Blue Force Tracking and your next generation with the enhanced terminal and the capabilities it has, does it improve, does your equipment improve the functionality of the legacy terminal and hardware in the first generation product, and therefore be an incentive to install your next generation product in advance within the sort of the next gen terminal and softwares available from Northrop Grumman.

Yes, Mark, I think what I kind of alluded to is that we have already done some improvements in our satellite network that provides a better solution to the existing network of the BFT-1 transceivers. Our new transceiver will not only be using, you know, a much higher speed up to over 230 kilobytes per second, but also will be switch selectable, which will allow us to use any speed below that 230 to meet up with the speed of the present network. So I think we have a tremendous advantage that we can field some portions of the future network even with our existing network and slowly grow into the final network. Mark Jordan – Noble Financial: Right. Our final question, you know, obviously this has been a tough market environment and that, you know, you have continued to generate a lot of cash. You have resisted, you know, share buyback, obviously the stock is down, the market is down, the cautious outlook you have is you know, probably also going to you know, put pressure on the stock. Question is have you considered changing your long-standing resistance to any meaningful share buyback?

I think being very conservative again in this area, I think we have always been very wary of our cash position and probably leaning on the holding side than most companies. And I think that will continue to be true. I don't think we would want to in this environment to spend our cash necessarily on either buybacks or for major acquisitions. I don't think we're going to not do acquisitions but maybe they will be part cash and part stock.

We will take our next question from Rich Valera at Needham & Company. Rich Valera – Needham & Company: Thank you. First Mike, could you give us a backlog by segment?

Sure. Backlog of $462.1 million was comprised of $53.8 million in our transmission segment, $319.7 million in our mobile data com segment, and $88.5 million in our RF amplifier segment. Rich Valera – Needham & Company: Great. And then on Blue Force Tracking as I'm sure, you know, your competitors there for the next gen has suggested that you could run essentially parallel systems to their next gen sort of side-by-side with yours on different hubs admittedly, but sort of connected through the IP layer. So it could be essentially changed from sort of a single source program to a dual source. Do you see that as a viable potential path that that program could take?

I guess Rich one could always say that one can run parallel systems, and eventually at the final use a network kind of combine the information maybe on a big screen, but you're still using two networks. The economics of it really don’t make sense. Can it be done? Yes, it can be done, but we believe that with our system there is no need to do that. We will be able have backward compatibility with our waveforms that we are using at the present time. Rich Valera – Needham & Company: Great, and then with respect to the GAAP EPS growth in fiscal 2010 of 15%, you know, your GAAP EPS in 2009 include, you know, a significant, the $6.2 million R&D write-off, which obviously we wouldn't have in 2010. So if you sort of adjust for that you are really talking, you know, quite modest EPS growth there and obviously implying some fairly significant margin compression. You know, we know that the BFT, I'm sorry the MTS upgrade has lower margins than in the standard transceivers, but is there anything else on the margin side we should be thinking about for 2010 relative to 2009 that would result in the margin compression.

Yes, Mark when – excuse me, when you look at the operating margins for the segment, you have to remember two things that we're going to have a significant decline in mobile satellite production for transceivers and those transceivers not only will impact the operating margin, you know, our mobile data communications segment, but they will also impact the operating efficiencies that we achieve at our Arizona facility. So our telecom transmission segment will be impacted as well. So you know, just taking a quick look, if you look at Q1, you will see a decline in our telecom transmission from 29.7% down to about 25% just in Q2. Those numbers will continue to decline when you model out FY ’09, you will look at your Q3 and Q4 and you’ll see that number come down and really that is what is driving the lower EPS into fiscal year 2010. Rich Valera – Needham & Company: What is the prospect at this point for getting additional transceiver orders. Do you think that would you know, obviously help to bump up those margins?

Yes. There is no question if we got a significant mobile satellite transceiver order that would ship in fiscal year 2010, you'll see a dramatic increase to that 15% target. Rich Valera – Needham & Company: Okay, and you think you really need to see the fiscal 2010 budget solidify before you can sort of make some judgments on the likelihood of that?

I think at this point there are a number of things that we are waiting for. You know, we are waiting for the budget in April to kind of give us some additional visibility. Certainly there is a lot of redeployment of troops going on right now that need to be stabilized. I'm sure the program office needs to assess their inventory levels, finalize fielding schedules, and once all of that sort of occurs, we expect them to share a fielding schedule with us, give us new delivery orders. The question for us is, you know, is that going to ship in late fiscal year 2010 or maybe even, you know, fiscal 2011. Maybe they apply it with a new BFT-HC transceiver stuff that we hope to get them start buying. You know, at this point we are just taking a very cautious approach and waiting until we see tangible order flow from the program office. Rich Valera – Needham & Company: Okay, that's helpful. Thank you.

Our next question comes from Ryan Rackley at Raymond James. Ryan Rackley – Raymond James: Hi good morning guys. Can you actually, now that you’ve launched next gen Blue Force Tracker, can you give us some more color on what the next step would be, and also if you’ve gotten any more visibility as to what the timing of the order will be coming from the DOD?

Well, I think I can answer that in two parts. I think we said that we just recently responded to a statement of work for approximately 50 transceivers. Those 50 transceivers prototypes will be the next generation BFT-HC transceivers that we will be supplying. Now these 50 units are going to be used by the program office in various locations, and in various live situations and demonstrate the new requirements and the new system. Approximately, it is difficult to tell but we understand this testing phase could be somewhere in the order of, let’s say, 10 to 12 months. So that puts us on a timeline somewhere if we receive our order, which we expect in the near term, let’s say by middle of this year, let’s say as a worst case condition. The testing, the delivery would be towards the end of the calendar year ‘09 and testing will probably take us through calendar year ‘11, calendar year ’10, which will put production units starting into 2011. So that is roughly the time frame that we are looking at right now. Ryan Rackley – Raymond James: Okay, great. And also just to be clear when you talked, you called it switch selectable technology. So, does that mean that these next gen transceivers are going to be able to communicate with the high-speed transceivers and the low speed transceivers at the same time or is it something you literally select between the two?

It will be a smart selection process, and the transceiver will incorporate all speeds, so that any speed used by – in a remote site will be accommodated by the transceiver. Ryan Rackley – Raymond James: Okay, great. Also, quickly just looking at the language in the Q, it looks like R&D and SG&A are going to both be higher, whereas last time you said it was going to be lower. Is that purely a function of sales being lower.

Yes, absolutely. There are two main activities that obviously we're going to continue to move forward with, one impacts SG&A and one is the R&D. You know, we are actively going to continue to market our MTS and BFT next generation solutions to the US Army during the second half, you know, as Fred discussed in his script portion there is lots of promotional activities and lots of trade shows that we are going to move forward with including that live demo in the vehicles in Washington DC. You know, at the same time, you know, there is an infrastructure cost necessary to support the US Government and we're going to maintain that you know, in the second half.

Tim Quillin from Stephens Incorporated, your line is open. Tim Quillin – Stephens Incorporated: Good morning.

Good morning Tim.

Hi, Tim. Tim Quillin – Stephens Incorporated: I'm trying to figure out the guidance for fiscal ‘10 or the guidelines for fiscal ’10 so I understand the telecom transmission and the amplifier, but in terms of the $282 million computer shipment, you know, my understanding is you know you'll have a piece – $15 million dollar piece in fiscal ’09, but you know, vast majority of the rest will ship in fiscal ’10, which you know, gets you $260 million perhaps in revenue in mobile data. My further understanding is that there can be concurrent shipments of transceivers, and I understand there is a funding documents in place other than the $43 million that is left right now, but it would seem that all indications are that there is going to be continued shipments of transceivers. So, as well as you know, also you think about the service revenue on both Blue Force Tracking and MTS side. It just seems like you get to much higher mobile data revenue number.

I think Tim you know to answer the question realistically, there are a number of factors here that makes us cautious. One is obviously the funding, which you mentioned. Two, which is another factor which many people don't realize is the actual fielding requirements that are proposed by the U.S. Army, and sometimes even though the funding is there, the fielding requirements aren’t maybe given out to be proper commands at the same time, and therefore the orders are not placed. It is pretty cloudy right now, especially as Mike mentioned what is happening in Iraq and Afghanistan, the redeployment of troops, redeployment of vehicles, and so forth. It's just a difficult situation to really understand where we are right now. So we're just being cautious. Tim Quillin – Stephens Incorporated: In terms of the, you know, third-quarter guidance in the mobile data segment, you expect it to be significantly down. I mean the revenues that we are going to see in the current quarter is that kind of reflective of a pure service revenue line, are we going to see any transceiver shipments in the current quarter.

Yes. I think this is a good way to look at it. Our mobile satellite segment for Q3, you know, it's going to really consist of two pieces. It will be the legacy mobile data, our MTS and Blue Force Tracking, as well as you know, some nominal revenue from our AeroAstro product line, but, you know, in Q3 we do not anticipate to ship any meaningful MTS or BFT transceiver products. There is some miscellaneous equipment and miscellaneous shipments, but certainly it's not a whole heck of a bunch and you know, certainly you will actually see, you know, on a directional basis with guidance, you know, your operating income for that segment will be, you know, more towards the breakeven point as well. I mean it's going to be a very, very low quarter as we continue to spend you know, our money on the marketing shows and our efforts to move forward the next generation product line. Tim Quillin – Stephens Incorporated: And then the satellite earth station business. It looks like the implied bookings in the telecom transmission segment anyway were about $56 billion in 2Q. Pretty big drop off quarter-to-quarter in terms of bookings, but you're expecting a flat year on fiscal ’10. It almost seems like the bookings or the softening of the bookings that you saw would suggest that you could have a decline in telecom transmission in fiscal ‘10 versus fiscal ’09.

Yes, I think you put a little bit more color on what Fred said. There was lots of moving parts as it relates to the segment. You know, certainly our mobile data com is going to be higher than fiscal year 2009, as we anticipate the $281 million shipment, mostly shipping in ’10. We expect, you know, lowering our amplifier segment because of the growth and I think telecom could either be flat or slightly lower, you know, in ‘10 and really at the end of the day when you add it all up, you know, we continue to target, you know, 15% consolidated revenue growth is the way we are looking at it. It's really tough at this point. We are trying to give a broad framework for fiscal year 2010. We're not getting too specific.

And we will go next to Jim McIlree at Collins Stewart. Jim McIlree – Collins Stewart: Thank you, good morning.

Good morning.

Good morning. Jim McIlree – Collins Stewart: Relative to the fiscal ‘10 numbers in mobile data, are you assuming any other mobile data business other than this big 282 shipment, and whatever residual AeroAstro you can get?

It is a follow-up to Tim’s question, you know, yes. We do anticipate you know, incremental satellite airtime for BFT and MTS. You know, there's going to be ongoing professional field service support necessary to do the installation and there will be some you know, nominal MTS and Blue Force Tracking, you know, rollouts that we do expect to occur, but there certainly I would not use the phrase significant and I will not use the word material. I will use very modest, and you know what we're looking at it as if we get a tangible order it would be significant upside to our 15% growth, absolutely. Jim McIlree – Collins Stewart: Understood, okay. I just want to make sure about that, and secondly on the telco side again for fiscal ‘10, are you assuming any Over-The-Horizon contracts that you are chasing now get booked and start shipping?

I would say we are not assuming a material piece of our Over-The-Horizon contracts. It really depends again on timing, which you know continues to be difficult to predict if we got that order earlier in the year or even before the end of fiscal year 2009. You know that could make that number go higher, which again, you know, could be upside to that 15% growth target bur right now you know, timing is just ultimately difficult to predict. So again I would say it is nominal revenue we are assuming and anything material or significant would be upside. Jim McIlree – Collins Stewart: And one more if I may, on the expense side, relative to the additional cost cutting measures that you are taking, can you just frame that in terms of how much you would expect to save. And then, you know, kind of where that would put you in terms of expense growth for fiscal ’10, just broad numbers if you could?

Yes, it’s real difficult at this point, because the actions, you know, we’re certainly contemplating actions. Some of it is going to come out of our cost per sales line and some of it is going to come out of you know, various buckets and operating expenses, but, you know, you really ought to just focus on our operating income line and kind of come up through your own P&L at this point.

We will take our next question from Tyler Hojo of Sidoti & Company. Tyler Hojo – Sidoti & Company: Hi good morning. I'm just hoping you can maybe update us with cash expectations either cash flow from ops or just cash balance for 2009 and maybe 2010 if you have it?

I think for fiscal 2009, we anticipate to finish the year at around $250 million of cash and certainly fiscal year 2010, you know, assuming the 15% target, you know, we should be well north of $100 million worth of EBITDA. Tyler Hojo – Sidoti & Company: Okay, and then I guess – I mean you spent a good deal of time just kind of talking about the Radyne integration and it seems like it is going pretty smoothly, but maybe you could just speak to, you know, how that company just in general is performing you know, relative to your projections when you actually purchased the company?

I think overall with the exception of our video and encoding product lines, everything is all a sort of above our expectations. You know, our integration is complete in our Arizona facility. We have combined completely the satellite earth station product line with our existing product line. Everything is certainly above our expectations. Our TWT product line in California is doing tremendously well, and you know, AeroAstro, you know, we had very modest expectations for them and they are meeting our expectations. Tyler Hojo – Sidoti & Company: So would it be fair to say that when you were reviewing the acquisition, kind of the forward-looking assumptions you are making were pretty conservative even in light of where we kind of sit under the kind of current economic environment?

Well, you know, I would just have to go back in time and go back and reference you to our conference call in May when we announced the acquisition. I think we were targeting about $120 million to $140 million of annual run rate back then. Certainly it's fair to say that, you know, the economy has just significantly deteriorated since then, and if not in the last couple of months as well. So, you know we're factoring all that into our new guidance going forward into fiscal year 2010, and certainly those product lines would be impacted in the same way that we are talking about our legacy products, but outside of the economic conditions things are way above our expectations. Tyler Hojo – Sidoti & Company: Thank you.

We'll take our next question from Peter Arment at Broadpoint.AmTech. Peter Arment – Broadpoint.AmTech: Yes, good morning everyone. Just quickly a lot of questions have been answered, but I just may be following up on Tim’s comments about the ‘10 guidance. It seems like given that there is so much, you know, still questions to be answered regarding uncertainty around funding levels obviously. Can we take a look at this, you know, the EPS guidance as this is your initial cut, but obviously I think that you would view that there could be potential upside given the likelihood that you're going to see some follow-on orders. Could you provide a little more color on that, because I think you're seeing a quite a dramatic hit here this morning regarding your outlook.

Yes, I mean you know, again you know the 15% revenue growth and 15% EPS you know, is a target. You know, we continue to view it as a very cautious number given the economy. You know if economic conditions, you know, stabilize better than what we expect, certainly there is upside to that, and I think most importantly you know we are really just waiting for tangible order flow from the MTS and BFT side, and any significant order is going to be very meaningfully upside to that 15% target. Peter Arment – Broadpoint.AmTech: Okay, and Fred you gave us some color on sort of the timeline, 3 to 6 months of when you may see some activity regarding the future orders there. Could you just give us a little more how that actually works its way through, I mean is it something we should be, you know, with funding in place and details out by February or I mean by April, you know we should hear something by mid-summer or could you provide us a little more color on that?

I think you know, giving it some sort of a range – I mean, we get our contracts let's say in the next couple of months and we deliver in – and I'm going to take the most optimistic, if we deliver our piece at some point, let's say in September of ’09. I believe the testing is probably going to take about one year for the program office to really test the systems out both ours and ViaSat’s. And so that puts us into the September, let's say ‘10 timeframe. At that point in time, I think the army would be in a comfortable position to write a statement of work, which will take a month or two months and so forth. So, I kind of called it the end of the year. So at the end of ‘10 they are in a position to do some production orders. That's the next generation of BFT. Now alongside of it is what we expect is our $600 million plus addition to our present contract, and that will extend the present contract to December 2013. So the Army really has almost a two-year window, where they can use the old contracts buy old stuff and new stuff, and then go into the new contract. So the Army is I think given themselves some latitude here, and I wouldn't be too surprised if it slips into instead of ’11 until ’12. Peter Arment – Broadpoint.AmTech: That is for Blue Force Tracking – 2, am I correct.

Yes. Peter Arment – Broadpoint.AmTech: Okay, and then Blue Force Tracking -1, your guidance for ‘10 assumes no extension, correct.

I assume there is no extension. Well, I shouldn't say that. The army has said that they will do this by December ’09. So again as Mike said in his presentation. If this order comes in early and depending upon what they need, we could see an upside in this area as well.

We'll take our next question from Michael Ciarmoli of Boenning & Scattergood. Michael Ciarmoli – Boenning & Scattergood: Hi guys, thanks for the call. Your stock is down 42% right now. You're not going to have your fiscal ‘09 year-end call until September, at which point you’ll have much more clarity on the budget, the economic conditions. I don't understand why you're giving fiscal 2010 guidance at this point at all. Can you explain that? I mean, I don't think you've done anyone any service, even if it was going to be weak. It seems like a lot can change between now and then.

I think you are absolutely right. A lot could change (inaudible) but on the other hand we felt that it was prudent on our part to make a statement of where we think we're at the moment even with the upside for ‘10 given that a lot of the investor – the analyst reports have said some very, very high numbers, and I think it would be less prudent for us to just continue letting those numbers right.

But you can get orders, you know budgetary items can change. You can get these orders and those numbers might be you know, granted I think the consensus might be north of $900 million but the level of growth you are suggesting, you know, you're going to have $260 million card of mobile data com, call it 250 of Telco transmission and 150 of RF amplifiers. That put you close to 700,000,000 excluding North Africa, excluding any additional orders. We don't even know what the requirements for Afghanistan are going to be. It just seems almost irresponsible to talk about this guidance right now. A lot of companies are withdrawing guidance and you guys are talking about you know, fiscal 2010 when you don't even have to do that until September. Michael Ciarmoli – Boenning & Scattergood: I think if we saw some of the analyst reports in the reasonable range, we probably wouldn't have done it, but I think it was incumbent on us to make sure that nobody is misled going forward. I mean at $20 a share, are you going to do a buyback now. I mean half of your market cap is going to be encashed based on your year-end numbers. It seems like the stock could be a bargain.

I agree. Michael Ciarmoli – Boenning & Scattergood: What is backed in. Can you elaborate on the AN/TRC-170 opportunity. You talked about upgrades in areas that big, and then to your fiscal 2010 numbers?

No, not in terms of any kind of meaningful order on that. Michael Ciarmoli – Boenning & Scattergood: Can you give us an order of magnitude as to what that opportunity can be. You talked about the additional components.

Yes, it could be around $27 million of revenue assuming its ships in one fiscal year. Michael Ciarmoli – Boenning & Scattergood: Okay and you know, I know North Africa is being dragged out here. You know, if you end the deal today, you know, how much revenue can be reasonably assumed if you book something today, if you book something say in July that finalize. How do you see that ramping.

Those contracts are usually a three-year type of rollout and there's usually not a lot of revenue in that first year because a lot of it is design work. So in terms of timing, if we got an order today pick the number $40 million. You could see $10 million to $15 million revenue in the first year of that contract. Michael Ciarmoli – Boenning & Scattergood: Okay.

Two contracts you can do that, and you can see Mike quite honestly you know to come back to your comment that even if you take these opportunities that we are talking about, and you add them into the 15% growth. You just see that there's a wide disparity of what's out there in terms of what we realistically believe is achievable to the way that we're going to run the business. The other thing, you know, just you know, we thought that was important is that these tablet computers are you know, low gross margins, and you know when you look at the EPS impact to that, it's a big impact. Michael Ciarmoli – Boenning & Scattergood: Right. What about the Brazilian subpoena with the inventory. How that – does that hit the inventory does is valued at a couple of million dollars.

The inventory had a value of I think $1.2 million or something to that effect, and you know, as I mentioned we have resolved the issue. We paid a fine of $7500 just yesterday. The inventory has been released to us and we do expect to shift that hopefully this quarter if not next quarter. Michael Ciarmoli – Boenning & Scattergood: Okay, fair enough, and then just one last question. On the crew 2.1 program, are you guys providing additional components due to the acquisition of Radyne or is it still – I think you still have about roughly 5 components on there that they were all primarily Comtech components.

They are all Comtech components, yes. Michael Ciarmoli – Boenning & Scattergood: Okay, great. Thanks guys.

Our next question is a follow-up from Mark Jordan at Noble Financial. Mark Jordan – Noble Financial: Good morning again. I want to go back and revisit the mobile data. You know, again reverse engineering, it looks that you know you have the revenue assumption that you would have for mobile data for 2010 will be comprised primarily of the tablet order, and you know roughly $50 million which would be a sort of normal service revenue stream on an annualized basis. So if that is correct then the guidance you are giving today assumes no meaningful transceiver orders in the fiscal 2010. Is that correct?

Yes. Mark Jordan – Noble Financial: Okay. That seems to be definitely on the conservative side. Thank you.

And we'll take our next question from Tim Quillin of Stephens Incorporated. Tim Quillin – Stephens Incorporated: Yes, I mean just two questions. One, is that a realistic assumption that you would have no transceiver shipments. Could that happen?

Yes, I guess Tim in speaking to our customers and their inability to come up with a fielding schedule, it could be realistic, it could have and upside. It is really difficult for us to tell. Tim Quillin – Stephens Incorporated: Okay, and then just in terms of – you generated a big picture long-term. How do you think about margins in this business. Is this inherently a 40% plus gross margin company, and if it is can you right size the company to get to a 15% to 20% operator margin despite your lower margin expectations for the next 6 quarters?

I would tell you it is much better than that. I mean certainly from – this is a question of timing of orders and nothing more. Once we, you know, get back to a steady state business of you know, ongoing airtime to the army for both the MTS and the BFT side of business. You know, some nominal and significant MTS orders or sort of call it normal source of business orders that we're going to get. You know Comtech is a 20% operating margin company. There is no doubt about it. It's just, there's a question of timing of orders.

And our next question is a follow-up from Peter Arment at Broadpoint.AmTech. Peter Arment – Broadpoint.AmTech: Yes, I just want to follow-up regarding, you know, given the impact on your stock prices this morning. You know your guidance assumes because you don't have the clarity around April. So should we assume that you know, post-April that we should see some update of this guidance. I don't know what your previous history is on speaking intra-quarter, but clearly you know, it seems to be an overreaction here this morning.

Yes, I mean certainly I think it is an overreaction, you know, but as I said previously you know, we're going to really wait for some tangible sign, getting a detailed defense budget in April is very important to us because that will provide some you know, exposure to the funding level of what we hope the MTS and BFT programs will get, but at the same time there is a deployment issue going on between Iraq and Afghanistan. There are a lot of troops moving around on operational requirements that are being decided upon by the guys in the field. That's got to make its way back to the folks in DC and ultimately result in a tangible order flow and a fielding schedule, and really it's going to be the fielding schedule that is going to make us feel comfortable on giving some guidance on the revenue side of things. Peter Arment – Broadpoint.AmTech: Sure. No I appreciate that. Thank you very much.

And our final question of the day comes from Michael Ciarmoli of Boenning & Scattergood. Michael Ciarmoli – Boenning & Scattergood: Hi guys, one last question. I don't know if you said this. The total backlog $462.1 million. How much of that are shippable within the next year?

You know, I would say you got to take out the $281 million backlog. You know, we gave you a $15 million number for Q4, and, you know, certainly some of that is going to ship Q3 and Q4 and then into the rest of fiscal year 2010. So that's is how I tell you to look at it. Michael Ciarmoli – Boenning & Scattergood: So you could essentially have half of your 2010 revenues already in backlog.

Well, we will certainly have the remaining portion of the $281 in backlog, absolutely. You know, some of our amplifier backlog as I mentioned to you, you know, the GMT order. Some of that will ship in fiscal year 2010. So, we'll go into fiscal year 2010 with, you know, with a pretty healthy backlog assuming things stay where they are today. Michael Ciarmoli – Boenning & Scattergood: Okay, thanks a lot guys.

And there are no other questions in queue. So I'll turn the call back to our speakers for any closing remarks.

Okay, well thank you – thank you all very much for joining us today, and we certainly hope to give you some clarity in the near term and in the future, and we hope to speak to you again at least three months from now. Bye.