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Meade Instruments Corporation (NASDAQ:MEAD)

F4Q08 Earnings Call

June 16, 2008 8:30 am ET

Executives

 

Steven L. Muellner – President, Chief Executive Officer, Director

Paul E. Ross – Chief Financial Officer, Senior Vice President - Finance

[Shelly Young], Vice President - Investor Relations

Analysts

 

Steve DeNault - Northland Securities

Jim Barrett - C.L. King Associates

John [Dashure] - Pinnacle Fund

Bobby Melnick - Carrier Partners

 

Operator

Good morning Ladies and Gentlemen. Thank you for standing by. Welcome to the Meade Q4 and full year 2008 earnings calls. During today's presentation all parties will be in a listen only mode. Following the presentation the conference will be open for questions. (Operator Instructions) As a reminder this conference is being recorded today, Monday, June 16, 2008.

I would now like to turn the conference over to Shelly Young, Vice President of Investor Relations.

Shelly Young

Good morning everyone. Welcome to Meade's 4th quarter and full year 2008 earnings conference call. Earlier this morning we issued a press release announcing our financial results. This release is available on the investor relations section of our website. This conference call is being web cast live and is also available on our investor relations section of our web site. The archived audio of the web cast and a transcript of the call will be posted on the website later today.

Before we begin, as usual, we would like to remind everyone of the precautionary language regarding forward-looking statements contained in today's news release which also apply to any such statements made during this conference call. During the course of this call the company may make forward-looking statements regarding future events or the financial performance of the company. We wish to caution you that such statements are just predictions and actual events or results may differ materially. For the list of risks and uncertainties that may affect future results, please refer to the company's various reports filed with the US Securities & Exchange Commission. Investors should not place undue reliance on such forward-looking statements and the company undertakes no obligation to update any forward-looking statements whether as the result of new information, future events or otherwise.

Our management team members participating on the call today are Steve Muellner, President and Chief Executive Officer, and Paul Ross, Chief Financial Officer. I would now like to turn the call over to Steve Muellner.

Steven L. Muellner

Thank you to everyone for joining us this morning. Even earlier out here on the West Coast than of course it is on the East Coast but we wanted to schedule this call before the market opened in order to give our investors sufficient time to digest the information we'll be sharing with you today. Before we discuss quarterly earnings I would like to make a few comments as I usually do on the continuing progress we are making with the restructure of the company.

In recent calls we talked about the closure of the facilities, most notably the closure of our plants in Arizona and Georgia as well as the sale of our excess facility in Germany. Tied to the process was the significant reduction in global headcount from over 500 employees just over two years ago to our current level of approximately 250 employees. These major efforts, along with other actions of course, have served to reduce the SG&A expenditures by over $10 million annually and while taking these steps we haven't neglected looking at our capital structure of course, reducing SKUs, related inventory from nearly $40 million two years ago to today's level of something below $20 million. Not insignificantly, while this work was taking place we were aggressively addressing the serious problems with our supply chain, which I'll remind everyone two years ago had all but ground to a halt not just with the Simmons product but more importantly with our critically important ETX telescope line. Today our supply problems are behind us and we have built a solid team of internal professionals and outside suppliers working together to deliver our product to meet market demand. The most recent action taken was the shutdown of manufacturing in the US and simultaneous transfer of production to Mexico which is expected to yield an immediate positive impact on our gross margin in fiscal 2009.

While all of this activity was taking place, the board of directors formed a special committee late last year to explore strategic alternatives for the company. The company owns some widely-known and well-respected brand names that we believe and have always believed have tremendous value in the marketplace. Our view of these brands was proven correct and we have begun to unlock that value. At the end of April we divested the Weaver and Redfield sport optics brands for cash proceeds of approximately $8 million and on Friday we announced the sale of our Simmons brand for a little over $7 million. These transactions have significantly improved the company's liquidity and put us in a strong position to internally fund our restructuring and future growth plans. Having said that, the sale of these brands leaves a burdensome overhead cost structure for the remaining company and we will be aggressively cutting costs this year to right-size the cost structure commensurate with our new revenue model. I've often said that Meade has a three to five year turnaround and I'll remind everyone that we are just now entering year three. We have a ways to go in completing the turnaround but we believe that we are on track to accomplish our goal within that three to five year stated period.

From a liquidity standpoint, although Meade was in compliance with its financial covenants at the end of fiscal 2008, the receipt of an opinion from our auditors raising doubts as to our ability to continue as a going concern is an automatic default event. In the interest of transparency though, I will tell you that although our Q1 results are yet to be finalized we believe that we will likely have missed our financial covenant at the end of Q1 as well and been in default anyway partially due to lack of revenue associated with the assets that we sold and partially due to decreased revenue within our high-end telescope offering which was negatively impacted by a tight supply coming out of Mexico as well as of course general end market weakness.

The good news is that we currently have a zero balance on our credit facility with B of A and approximately $9 million cash on our balance sheet so our short-term liquidity risk is extremely low. Paul and his team are working with our lender to amend the credit facility and cure the defaults, and at this time we fully expect to finalize an amendment over the next few weeks.

I'd now like to turn the call over to Paul to review the financial results for the fourth quarter and full-year fiscal 2008. Paul.

Paul E. Ross

Rather than repeat information already in the press release or in the 10K that was filed on Friday, I'll focus mainly on some highlights and add some color where I can. Net sales for the full year of fiscal 2008 were down approximately $3 million from the prior year. We lost the Discovery Channel Store to the customer when they shut down their retail mall operations early last year and they had been a $5 million plus customer in the prior year. We also introduced the mySKY and generated a few million dollars of incremental revenue from that single SKU. Of our $98.5 million in revenue last year a little more than 17% of it was related to the sport optics brand that we had just sold, so for future comparisons on an apple-to-apple basis the remaining company did a little over $80 million in revenue, almost half of which was generated by Meade Europe and a little more than half by the US operations.

For fiscal 2009 we are planning for modestly lower revenue than last year, for two reasons. First, and as Steve discussed, our Mexican manufacturing operation has taken much of the first quarter to ramp up production and while we fully expect to be meeting customer demand before the end of the second quarter, the slower first half will have impacted the overall yearly numbers. Second we are generally cautious on the state of the end consumer markets at this time.

From a gross margin standpoint the decrease in gross margins year-over-year was primarily driven by the inventory write downs we recorded during fiscal 08. Excluding these write downs the gross margin for this year would have been relatively consistent with the gross margin last year. As we look at fiscal 2009 we expect to see continued pressure on gross margins as a result of the lower revenue due to the sales of Weaver and Simmons as we continue restructuring. The Simmons and Weaver brands had been generating higher than average gross margins than was the rest of the company so until we complete the restructuring and reduce the overall cost structure, gross margins will continue to be under pressure during fiscal 2009.

From an SG&A standpoint the improvement in fiscal 2008 over fiscal 2007 was dramatic driven primarily by the headcount reduction and facility consolidations we discussed and to a lesser extent by some one-time costs in 2007 that did not recur in fiscal 08. Research and development remain steady as we continue to invest in new product developments. We expect to further reduce costs in fiscal 09 and we expect to implement these cost reductions in relative short order.

I'd like to now turn the call back over to Steve.

Steven L. Muellner

As I commented in the press release, although we were disappointed in our operating results for fiscal 08 and we acknowledge another year of restructuring ahead of us, we are still happy with the progress that we've made in restructuring the company this year and last year. We have reduced the company's operating cost structure significantly by consolidating the facilities and decreasing headcount. We relocated our manufacturing facilities to Mexico, we have a stable supply chain, we have new products lined up for introduction into this market year and into next year. We cleaned up our inventory, we reduced our SKUs, and we're in a much better position now than we were at the start of the year. With the divestiture of the Simmons, Weaver and Redfield brands we've strengthened our balance sheet and maybe even more importantly centered our focus now on our true core competency.

But our work is far from over and we all know that the end retail markets are very weak this year so we will have another tough year ahead of us. With the sale of the sport optics brand which combined contributed a little less than 20% of our revenues, we will be quickly reducing our overhead structure to a level commensurate with the new revenue model and as Paul implied we have plans in place to do this very quickly. We anticipate that completing this restructuring could take the better part of fiscal 09.

So our general message to the investor community is this: one, thanks to the recent sales of our sport optics brand our liquidity is sound and we are on solid financial footing; two, new products will continue to play a central role in our overall strategy and you can look for a pretty exciting new product announcement coming up over the next few months; three, it will be a rough year for retail in general, we are sure to be impacted just like everyone else by that; and finally, we will not generate a profit this year as we continue to restructure the business.

Before we open up the call for questions, I'd like to once again thank our investors for their patience as we turn the company around and continue to be watchful for other possible strategic opportunities. We would now be glad to open up the call for questions.

Question-and-Answer Session

Operator

We will now begin the question and answer session. (Operator Instructions) Our first question comes from Steve DeNault - Northland Securities.

Steve DeNault - Northland Securities

I missed the comments on mySKY contributed how many millions of dollars in 2008?

Steven L. Muellner

Just under $3 million.

Steve DeNault - Northland Securities

And then you said something about an announcement in the next few months. Is that a new product announcement?

Steven L. Muellner

Yes it is, Steve.

Steve DeNault - Northland Securities

Along what kind of lines should we be thinking about?

Steven L. Muellner

Well, it's a telescope product and in our opinion it's very exciting new technology that there's nothing quite like it in the market today.

Steve DeNault - Northland Securities

Is it similar to mySKY in that it is geared for the masses or is it a high-end offering?

Steven L. Muellner

I would say, Steve, that it's geared to broadening the category in general.

Steve DeNault - Northland Securities

With your new operating structure in Mexico, what should we be thinking about in terms of a reasonable breakeven level for Meade?

Steven L. Muellner

Well, as we talked about, the business is shaking out to be roughly something just over 50% US and just under 50% internationally so it's our intention that we're going to do better than break-even with that volume level that we talked about next year.

Steve DeNault - Northland Securities

So you can breakeven in this fiscal year?

Steven L. Muellner

Not in this fiscal year but in the next fiscal year.

Steve DeNault - Northland Securities

So this year, is it a process of shakedown and start up and things of that nature or is it more along the lines of just a really difficult consumer macro?

Steven L. Muellner

The consumer macro is clearly not helping it as we're going through our own problems of sorting things out and you get with this headwind wouldn't have been something I was hoping for, but at the same time we made the hard decision to shut down Irvine last year, Irvine productions, knowing that we weren't really up and ready to take all of the orders yet in our Mexican facility and so as Paul talked about we were way behind on orders throughout the first quarter, we will be caught up on orders by the end of the second quarter but that still means that we're still not shipping to demand yet and I can tell you we have significant backlog right now which I view as a healthy thing that interest in our product line is not falling off. We have significant backlog on the various products that are coming out of Mexico so as we get caught up we could experience some nice shipments in the second quarter as we're doing that and then that would pave the way for some pretty healthy ordered shipments for the all-important third quarter.

Steve DeNault - Northland Securities

And maybe just one final question, what were the multiple of revenues that you got for Simmons versus the multiple you got for the Redfield-Weaver, etc. sale?

Steven L. Muellner

Paul, do you want to take that?

Paul E. Ross

Yes. Simmons was approximately half revenue while Weaver was north of one. Weaver was doing about $3.5 million and we sold it for $5 million. Redfield was doing $0.00 and we sold it for $3 million.

Steve DeNault - Northland Securities

So what do you think? I mean, that's a significant change. What's it a function of?

Paul E. Ross

Well I think first of all the Weaver brand was one of these under utilized brands, not just for the time that we have owned it but really for quite some time now. The ownership of that brand has not focused on doing anything with it. Two years ago when I came on board we were doing quite literally zero advertising on Weaver, for instance. Last year we started to do a little bit but I think the company that we sold it to saw some very strong synergies with their business. As you may know, ATK also owns the Weaver brand name for riflescopes accessories and so it fit very well with their line. The rings that they've been doing for some years now I think they've always regretted selling the Weaver brand to us frankly, which I'll remind you Steve and others on the call that we actually bought the Simmons Outdoor company from ATK back some years ago. So I think there were huge synergies there in short.

The Simmons brand, while the sales were clearly higher, I think it had a much more problematic position in the marketplace in terms of exactly where it fit in and I'll be quite candid with you that that's one of the reasons why we started to consider what the right thing might be to do with Simmons as we anticipated the business coming back fully from where it was a few years ago before our supply chain problems, we realized the market had gotten incredibly tough, and the Simmons brand as most of you know is not a number one brand, it's not even a number two brand, it's probably not even a number three brand. So finding the right home for it and the right position in the marketplace was becoming increasingly obviously difficult. So I think we got a fair price for it, at the end of the day we got a good price, I think that the acquirer Bushnell who has a much stronger position in the sport optics world than does Meade Instruments, I think they'll be able to utilize that brand and make something out of it in a faster order and better than we would have been able to do. So at the end of the day I think a good thing for both sides.

Operator

Our next question comes from Jim Barrett - C.L. King Associates.

Jim Barrett - C.L. King Associates

Paul, a question for you, considering the reduced size of the company and the amount of cash on the balance sheet, what do you envision as being your peak borrowing needs as we enter the holiday seasons?

Paul E. Ross

I would expect that as we get into Q3 when we're really carrying a lot more inventory and receivables, I don't think that on the US side we'll probably get to be much more than $10 million which is I think half of where we were last year and then in Europe, their borrowing season is actually more narrow than ours so I would also expect a single digit number [inaudible].

Jim Barrett - C.L. King Associates

A single digit?

Paul E. Ross

Yes.

Jim Barrett - C.L. King Associates

And Steve, on the new products front in terms of meaningful new products this year, are we talking about one additional new entry or do you expect to have two or three?

Steven L. Muellner

We'll have a number of new products, Jim, but as we did last year we'll focus on one what we consider to be a significant new product and that's where our marketing and advertising efforts will go.

Jim Barrett - C.L. King Associates

And refresh my memory, is there anything new evolution of mySKY?

Steven L. Muellner

We have talked about a number of things with mySKY, not on this call, Jim but we took the price from $399 at retail down to $299 some time a couple, three months ago and this was all planned. Those of you who have been watching us and talking with us over the last couple years when we introduced mySKY, I actually shared with you that the marketing strategy which was going to be take it out at $399, bring the price down, add more bells and whistles and our strategy will be to probably take the price down again sometime in the future as we go forward. Probably not this year but as we learn more about the manufacturing in areas where we can take more costs out that's going to continue to be the strategy. But this year is mySKY, for instance, that we'll be shipping at Christmas time will have significantly different and improved content and by that I mean when you punch in that you'd like to see Mars, for an example, the content will be some pretty exciting animation that we've gone to some Hollywood studios here in California to help us with.

Jim Barrett - C.L. King Associates

And then finally, if I look out a couple of years, do you envision in any way taking the company's IP and expanding it into non-telescope, non-binocular markets? I thought at one point there was some medical applications and/or some solar applications?

Steven L. Muellner

Yes. Jim, you know we've talked about, you've probably heard me say it so much you get sick of hearing it but we've talked about strengthening, fixing and growing. And what we just did in this last six weeks or so was sort of the ultimate of bringing it back to the core, the foundation of the company. What we're now going to do is get very interested in seeing what all this technology we have that we think maybe can apply to other areas and thinking about how we're going to expand it. Some of our competency you know isn't' just the technology that we own already but, as is so often the case with technological products like ours, it's also the know-how on the manufacturing side and the techniques of how you put it all together. And so we are going to focus primarily on being a telescope company but some of that technology does lend itself to the medical side which you've alluded to, we have some very strong relationships there and we expect, we actually are currently focusing on growing that business on the OEM side we think should start happening relatively quickly, and then there are other areas that you also alluded to on the solar side which we continue to work those projects. They're slower than you would like to think but I suppose that's predictable in going from the scope works to actually marketable products but we have not stopped on those projects and I know that I've talked about them on these conference calls.

Jim Barrett - C.L. King Associates

Correct.

Steven L. Muellner

So going back a while, those are still active projects, Jim.

Operator

Our next question comes from John [Dashure] - Pinnacle Fund.

John [Dashure] - Pinnacle Fund

Just to pinpoint this number, what were the actual revenues generated by the brands that were sold last fiscal year? You gave us a percentage but I want to make sure I have the hard number.

Paul E. Ross

Simmons was doing about $14 million; Weaver was doing about $3.5 million; and Redfield was doing $0.

John [Dashure] - Pinnacle Fund

So about $17.5 million?

Paul E. Ross

Yes.

John [Dashure] - Pinnacle Fund

You said that those brands had higher gross margins than the rest of the business. What was the operating margin? In other words what was the EBIT, either percentage or absolute dollar for that $17.5 million sales?

Paul E. Ross

John, those products were really fully integrated into the rest of the company so there are a lot of shared resources in the operating expenses. I can estimate for you that I think that they were probably doing 10% at the bottom line operating profit, that's something of an estimate.

John [Dashure] - Pinnacle Fund

Okay, that's an estimate.

Paul E. Ross

Yes.

John [Dashure] - Pinnacle Fund

So if we back that up, the $17.5 million from the $98.5 million total that leaves about $81 million. I guess you thought that would be lower this year. On what magnitude on terms of diminished sales?

Paul E. Ross

I'm a little uncomfortable forecasting the revenue for this year mainly because a) our end market, the retail markets in general are so weak, and b) we're also coming up to speed and ramping up Mexico. I think it'll be modest and I don't think it's going to be 20% or something like that but I'd rather not give a concrete number right now.

John [Dashure] - Pinnacle Fund

On the cost reduction side of it, I think you said it would take most of this year. What's the dollar amount you're targeting roughly for cost reductions this year?

Paul E. Ross

It's going to be something north of $5 million of additional costs.

John [Dashure] - Pinnacle Fund

And your headcount a year from now, you would expect to be what?

Steven L. Muellner

I'm not going to go there with you, John. I think we have a broad audience on this phone call and there will be some headcount impacted but there's a lot of other areas we'll be looking at, too.

John [Dashure] - Pinnacle Fund

And on the supply side, I've kind of lost track in terms of what product is coming from where. Could you just refresh my memory in terms of what's coming out of Mexico and what's coming out of China at this point?

Steven L. Muellner

Sure. The simple way to do that would be to talk about what's coming out of Mexico. We have our Coronado solar products, we have all of our OEM, we have what we consider the higher end telescope so it's the LX200, the LX90, and we also have our LXD products coming out of Mexico. We have plans to expand exactly what we're doing in Mexico but as of right now today, those are the products.

John [Dashure] - Pinnacle Fund

What's coming out of China?

Steven L. Muellner

John, everything else. So all of our opening price point entry level type products, the mySKY, the ETX -

John [Dashure] - Pinnacle Fund

Okay, so all of the core binocular and telescope products are coming out of China.

Steven L. Muellner

When you say core, non-high end.

John [Dashure] - Pinnacle Fund

And I guess, what's the update on the strategic review? I know you sold the brands that we talked about but what's the status of the ongoing strategic review?

Steven L. Muellner

It's still ongoing. However, as you can imagine it's sort of coming to a point where we probably will make a decision to either do something or not in relatively short order but the process is in our opinion has been fruitful and it's still ongoing.

John [Dashure] - Pinnacle Fund

When do you anticipate wrapping that up roughly?

Steven L. Muellner

I would say if we were having this phone call three months from now for the next quarter, we'd be talking about the wrap up but I really want to say that that's a projection and I could be wrong.

John [Dashure] - Pinnacle Fund

Clearly you do not want to rush something like this.

Steven L. Muellner

That's right.

John [Dashure] - Pinnacle Fund

I guess the only other question is, back to the prior question about peak borrowing needs. I think Paul you said for US it would be $10 million or so. What was the number for Europe again?

Paul E. Ross

I just said that it would be in the single digit of millions, probably somewhere between $5 million and $10 million.

John [Dashure] - Pinnacle Fund

Okay, because I've noticed the credit line was just reduced from $20 million to $15 million.

Paul E. Ross

That's for the US only.

John [Dashure] - Pinnacle Fund

Oh, that's for the US only. What's the European credit line at this point?

Paul E. Ross

We renegotiate that one every single year and we have not done that for this upcoming season yet.

John [Dashure] - Pinnacle Fund

When does that mature? When will you renegotiate that, I guess is a better question?

Paul E. Ross

We'll probably have it renegotiated sometime over the next 30 days.

John [Dashure] - Pinnacle Fund

The next 30 days. And what's the amount on that line now?

Paul E. Ross

Well, right now it's a $500,000 line. That's where it stands during the non-peak season.

John [Dashure] - Pinnacle Fund

What was the most you borrowed against it last season, last year?

Paul E. Ross

I think it was somewhere in the neighborhood of $6 million or $7 million.

John [Dashure] - Pinnacle Fund

And the lender in the US is Bank of America, I think?

Paul E. Ross

Correct.

John [Dashure] - Pinnacle Fund

Who is the lender in Europe?

Paul E. Ross

[Volk Bank].

John [Dashure] - Pinnacle Fund

Which one?

Paul E. Ross

It's a German bank.

John [Dashure] - Pinnacle Fund

[Volk Bank]. People's bank. Okay.

Operator

Our next question comes from Bobby Melnick - Carrier Partners.

Bobby Melnick - Carrier Partners

How much, if any, of your SG&A in either the fourth quarter or fiscal year 08 would you characterize as non-recurring?

Paul E. Ross

Bobby, I would say there is a decent chunk of that in that Q4 when we had the goodwill impairment that was $1.6 million and that was probably the biggest chunk of non-recurring items in Q4. There was a little bit of inventory clean-up in Q4 of maybe $0.5 million. So I would estimate somewhere in that $2 million to $2.5 million range.

Bobby Melnick - Carrier Partners

And I just want to make sure, the inventory charge was not in the cost of goods sold, that was in the SG&A or was it in the cost of goods?

Paul E. Ross

The inventory was in cost of goods.

Bobby Melnick - Carrier Partners

Okay, so you had inventory and cost of goods sold was how much?

Paul E. Ross

About $0.5 million.

Bobby Melnick - Carrier Partners

And the $1.6 million of the goodwill impairment was in selling and G&A?

Paul E. Ross

No, it was in operating expenses.

Bobby Melnick - Carrier Partners

I guess what I'm trying to get at is, in your fourth quarter your SG&A was $6.5 million, which was a 25% reduction from the prior year's $8.6 million which was the same percentage reduction that you showed year-over-year going from 33% to 25%. If the goodwill impairment came from SG&A, then that would suggest that your pro forma run rate SG&A for the fourth quarter was $5 million rather than $6.5 million which would suggest again, just sort of very very straight forward and recognizing there's some seasonality to the business, that you guys would be doing something like $20 million in operating expenses today and if you could take that $20 million down to $15 million, which is what you just said in the answer to a prior question or you said you could take out another $5 million in costs during 2009, that would leave you going into 2010 with something like a $15 million operating expense. That's what I'm trying to ascertain. Is that arithmetically right and logically right or is there something I'm missing there?

Paul E. Ross

I think that that's directionally right. Some of the cost savings that I talked about would also be up in cost of goods sold.

Bobby Melnick - Carrier Partners

So what do you think going into 2010 is your operating expenses, your sort of baseline number?

Paul E. Ross

I think that going into 2010 we're going to be looking for something in the 20% of revenue range for operating expenses.

Bobby Melnick - Carrier Partners

But most of your op ex I'm guessing is going to be fixed, no? I mean, obviously you have some variable in your selling but your G&A is going to be fixed.

Paul E. Ross

You know, Bobby, some of the cost reductions that we had planned for this year include such things as getting out of a very large building that we're currently occupying so we're expecting to bring some of the fixed costs down.

Bobby Melnick - Carrier Partners

Okay, so if you start 2010, again either way we're backing into sort of the same number which is sort of $15 million, $16 million, $17 million in op ex.

Paul E. Ross

Sure.

Bobby Melnick - Carrier Partners

Okay, so obviously just to make sure I'm right here because you kind of lead this horse to water but you don't really stick our head in the trough. I mean, what you're talking about is in order to get this company to break even, one or both of two things has to happen, the sort of $80 million run rate revenue has to stabilize or reverse and turn up, turn positive, you have to produce more than $80 million, or you have to get the gross margin up into your sort of historical 20+% range in order to achieve EBIT profit of contribution and obviously assuming that you're self-financing at that point and not requiring any of the bank lending, you don’t' tap the credit facility. Is that just logically where the company sort of goes?

Paul E. Ross

Yes, I think that's generally true. When you look at what we have planned for cost reductions, SG&A should come down but gross margins should go up. Keep in mind that the move to Mexico really just occurred at the very end of fiscal 08 so this is going to be the first year where we get that benefit and then fiscal 10 is when there will be a full year of full production coming out of Mexico.

Operator

And we have no further questions. I'd like to turn it back over to management for any closing statements.

Steven L. Muellner

Okay, we actually have no closing statements so thank you everyone for tuning in and thank you for the good questions. Talk to you next time.

Operator

Ladies and Gentlemen, this concludes the Meade Q4 and full-year 2008 earnings call. If you'd like to listen to a replay of today's conference, please dial 800-405-2236 or 303-590-3000 with the pass code 11115874. AT&T would like to thank you for your participation and you may now disconnect.

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Source: Meade Instruments Corp. F4Q08 (Qtr End 2/28/08) Earnings Call Transcript
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