CUB
#So we will see an improvement in the next couple of quarters, which will get us into that range of 10.5% to 11.5%.
I can't give you specifics by quarter.
But the first-quarter was very weak, so we are starting to see this quarter improve, and then we will see the next couple of quarters.
We are seeing most of the improvement, really, in North America.
This is <UNK>.
How are you.
Both of those opportunities ---+ I would say the upgrade to WMATA is worth tens of millions of dollars.
I think the opportunity in Sydney could be much greater than that.
Sydney will likely ---+ it will be over the term of the contract, so we are talking that could be 8 to 10 years on the initial term.
So ---+ this is <UNK>.
Pretty much following what we said on the call back in January, they ---+ as far as sales go, it's very backend-loaded to Q4, more on the GATR side because it's a product shipment business.
The TeraLogics business is very consistent quarter-to-quarter.
So, I would say GATR is a little bit backend-loaded in Q4.
But they are performing, margin and sales-wise, very close to what we thought they would do.
Hi, this is <UNK>.
How are you.
We are very pleased reaching the first hurdle in early April.
The next milestone is, after our fiscal year closes in the beginning of October, we will roll out a lot more functionality of SAP across all of our Defense businesses in the US.
It is then followed by CTS and additional units internationally in the next fiscal year.
So, we are on track for all the milestones.
And I would expect to see efficiencies improvement, particularly in SG&A and supply chain spending, starting to kick in at the end of next fiscal year.
Yes, and especially in Defense Systems.
So, you're really ---+ like last year, because we are going to ship a lot of product systems, so Q4, revenue-wise, in Defense Systems, will ---+ they will ---+ be have a peak in sales and earnings in the Q4.
If you look to last year, I think we made virtually most, if not all, the profits in Defense Systems in Q4.
That's correct.
It's just different shipments in comparison to last year.
You know, we haven't given any guidance on that, so I am going to defer on the question, because we didn't provide any guidance on that.
But it will be something less ---+ a lot less than last year because of the acquisitions and the ERP spend, to give you a little bit of color.
Yes, we didn't have the specifics, but we just gave ---+ the currency that is causing everything is the pound.
The ---+ when we gave our initial guidance, we gave what was the assumed rates for the year.
So, the Australian and the New Zealand are relatively flat or a little bit up from where we were, but it's the pound that is probably down about 10% for the year.
Sure.
That is correct.
So we expect the ---+ this is <UNK>.
We expect the trial to go [N] number of months, and we expect a follow-on to happen towards the end of the calendar year.
We are very hopeful that the design and build portion will have an improvement over the past and will have margin expansion there in Australia.
So, organically, there's three large bids.
I think we only really need to win one or two of those to really kickstart the growth.
So, New York on the MTA bit, we have a KC-46 bid.
As <UNK> mentioned, there is a bunch of large services contracts and Defense Services.
And then Transportation has got Melbourne sitting out there as well.
So it doesn't take winning all those.
It is a combination of a couple of those.
And our growth historic for many, many years has been a combination of organic as well as growth by acquisition, and we intend to follow that path.
Yes, this is <UNK>.
As I mentioned earlier, there are a number of government services or ---+ ground services training opportunities that are matched to our skill set.
And there is a number of them, so if we win at the same rate that we have been winning, there will be growth.
The portfolio reshaping of these larger companies of their services business may make sense for them.
I think the environment continues to be competitive.
But I am heartened by the fact that these opportunities I spoke of are not LPTA.
They are best-value opportunities.
And you know, the margin profile isn't as attractive as the systems business, but the incremental returns on capital are still very high in services.
So, we are able to grow the business and the business is throwing off free cash flows.
So the incremental returns are decent.
In addition to the asset velocity, we also gained customer intimacy.
A lot of the services contracts are in training.
We obviously are in the training systems business, and that flow of information and experimentation is very helpful to our systems business.
I think if you look at other companies, there was not as close a synergy between their services business and their rest of their business.
And in our case, there is.
Yes.
So, all of the contracts ---+ Chicago, Vancouver, Sydney ---+ are profitable now, <UNK>.
And we are getting some monies as we go, kind of an incremental.
On the LCS contract, we are in the middle of negotiating with the customer.
And, as a matter fact, we got some word recently that they are keen on resolving the issues.
So, if we remain savvy, we will be able to get it done this fiscal year.
And we are working towards that.
Thanks for joining us on the call today.
We are excited about our future and thank you very much for your interest and support in our great Company, as we work hard to create greater value.
