ParkerVision Q3 2007
Earnings Call
November 5, 2007
Paul Henning, Cameron
Associates
Cynthia Poehlman, Chief
Financial Officer
Jeffrey L. Parker,
Chairman and Chief Executive Officer
Michael Donahue of
Emerging Growth
Greg Lewin, from First
Jack Silver from SIAR
Capital
Mark Gaskill from MKG
Financial Group
Stephen Hansel from
Eclectic Investment Management
Bob Sales with Alan King
Capital Management
Jim Whitten with Laidlaw
Operator: Good day everyone and
welcome to the ParkerVision’s Third Quarter Earnings Results Conference Call.
As a reminder, today’s call is being recorded and at this time, for opening
remarks and introductions, I would like to turn the call over to Mr. Paul
Henning. Please go ahead, sir.
Paul Henning: Thank you. Before we
get started, I want to remind listeners that this conference call will have
contain forward-looking statements, which involve known and unknown risks and
uncertainties of our business -- our businesses and the economy and other
factors that may cause actual results to differ materially from our expected
achievements and anticipated results. Included in these risk factors such as
the ability to maintain technology advantages in the marketplace, achieve
timely market introduction and acceptance of our products, maintain product
patent protection, and the availability of capital among others. Given these
uncertainties and other factors about our business, listeners are cautioned not
to place undue reliance on any forward-looking statement contained within this
conference call. Additional information concerning these and other risks can be
found in our filings with the SEC, the Securities and Exchange Commission.
We’ll begin today’s call with the Cindy Poehlman, CFO, who’ll
review the quarterly financial results for the third quarter. She’ll be
followed by Jeff Parker, the CEO of ParkerVision, who’ll report on the
company’s business activities. Cindy, would you like to go ahead, please?
Cynthia Poehlman : Thank you, Paul and
thanks to those of you who are joining us for our third quarter update. For the
quarter ended September 30, 2007, we reported a 194,000 in revenue from
Engineering Design Services and 284,000 in service revenue on a year-to-date
basis. There was no revenue for the comparable period in 2006. We reported
gross margins of $20,000 or 10% for the quarter and $32,000 or 11% for the nine
month ended September 30, 2007. As I mentioned last quarter the margins are
significantly impacted by the allocation of indirect engineering costs, to cost
of sales.
These costs include facilities, overheads, equipment depreciation,
and patent amortization cost that would be incurred regardless of the revenue
generated for services. As we reported in our 10-Q issued this morning these
indirect costs represent approximately 38% to 40% of total cost of sales.
For the quarter ended September 30, 2007 we’ve reported operating
expenses of 4.9 million compared to 4
million during the same period in 2006. On a year-to-date basis we’ve reported
operating expenses of $14.2 million compared to $13.2 for the same period in
2006. The increases in operating expenses are largely a result of our ability
to successfully sell certain budgeted RF engineering and IC design positions as
well as ongoing prototype design and fabrication cost. It’s important to note
that these increases are not directly related to our relationship with ITT but
rather represent our investment in continuing to iterate on silicon verified IP
in anticipation of future customer needs.
We reported a net loss of
$0.19 per share this past quarter compared to $0.16 per share for the
same period in 2006. On a year-to-date basis our net loss per share was $0.55
compared to $0.54 for the nine months ended September 30, 2006. We ended the
third quarter with 17.7 million in cash reflecting a 1.8 million net use of
cash in the third quarter of 2007. This $1.8 million use of cash represents
approximately $3.8 million used for operations, investment and equipment, and
investment in intellectual property and approximately 2 million in cash
proceeds from the exercise of warrants and options during the quarter.
Our cash usage for operating and investing activities continues to
average approximately $3.5 million per quarter. For the first nine months of
2007 this use of cash has been offset by $6.5 million in cash received from the
exercise of warrants and options with weighted average exercise prices ranging
between $8 and $9 per share.
I will be happy to address any questions you may have regarding
the financial statements during the Q&A session at the end of the call
today but for now I would like to turn the call over to Jeff Parker for an
update on business activities. Jeff.
Jeff Parker: Thank you, Cindy and
thanks to those of you who are joining us this afternoon for our quarterly
update. I would like to take this opportunity to update you on three distinct
subjects that are at the top of our minds and likely yours as well.
First, the progression and status of our activities with our first
the d2p customers ITT; second, a report on where we are in reaching our key
goal to gain design wins within the OEM wireless handset community; and finally
a view of the progression of our technology and the markets that it will serve.
All three of these topics are interconnected in complementary ways and should
help you continue to follow the strategy, strength of opportunities, and future
of our company. So first let’s start on ITT. As you may the call, our first
steps with ITT were to define the product implementation and architectural
approach of our technology for certain applications within their marketplace.
That work has been ongoing since we entered into our agreement and continues
today. What is encouraging are the synergies between the commercial product
development that ParkerVision had already been doing and applications that ITT
can apply our D2P technology to. While I am not at liberty to describe their
product plans, I am able to tell you that the fundamentals of our technology as
a flexible platform and its ability to process many different RF waveforms and
to do so efficiently in both power usage and hardware implementation continues
to be the value proposition of our technology.
I think that is important because there are certain growing trends
in wireless communications that are an extraordinary fit with our intellectual
property. This will be one of my discussion points at our upcoming presentation
at the annual AeA Investor Conference where we will begin to present tomorrow.
So in short, our work with ITT continues and as I noted during our last call,
the ITT relationship and their applications with synergistic with and would not
distract us from our primary market target, the wireless handset OEM’s and
their suppliers and that continues to be the case.
So now let’s move into an update on our progress and the goal of
finalizing initial design wins in the wireless handset markets. This is a
tricky topic to discuss with you not because we are not making great progress
because we are, but because there are genuine constraints of what is and is not
appropriate for ParkerVision to discuss publicly before the fact.
So here is what I think is appropriate to share with you today. We
have made very good progress on several fronts towards engaging in our initial
agreement. I would say that we are in a similar territory when early in this
year I told you that I thought there would be a good possibility that we would
have an unscheduled conference call update before our next planned financial
update. That comment preceded our announcement of our ITT relationship. At this
time we are certainly keeping our legal counselors busy. Obviously I want you
to understand that I can’t guarantee this. If we controlled all the factors on
both sides of the negotiation towards a final agreement then we could, but we
only get to handle one pen, there are other pens that we don’t control but we
are engaged with parties that are cooperative, enthusiastic, and wanting to get
the closure so the products can be fielded sooner than later with our
technology.
Finally, I want to make some points on what is happening in the
wireless mobile communications marketplace and the trends that we see which are
squarely in favor of continuing to build shareholder value from what
ParkerVision has developed in both intellectual property and actual hardware
implementation. AeA is providing us a great forum to update the investment
community on the converging market trends that will enable ParkerVision to
continue building significant shareholder value.
Here’s the sneak preview of our theme. ParkerVision’s intellectual
property both our D2P power transmitter technology as well as our D2D direct
conversion receiver technology have enabled us to create hardware platforms
that can now be rapidly applied to a wide range of mobile products, not just
singular products. This is an important distinction as opposed to having
created a singular piece of hardware for a very specific application and
enables us to participate in the growth opportunities in this industry in
unique ways.
The trend in the wireless mobile communications market today is
truly one of those “build it and they will come” opportunities. Network
carriers have poured billions into creating third generation networks. Have
just started to deploy third generation devices in volume and yet the dialogue
in our industry has never been more lively about what will be the foundation
for the fourth generation network and how quickly can those get built.
Additionally third generation networks haven’t deployed without a hitch, there
are still plenty of improvements that are being sought after, from less
extensive 3G devices to 3G devices with better talk times and longer battery
life.
So why is the industry already active in looking ahead to 4G even
before 3G is perfected. The reason is that vision always precedes reality and
the universal vision is for an un-tethered world where voice, data, and
multimedia are available anywhere without wires and at fast speeds on all kinds
of devices. The reason this fundamental trend is important to ParkerVision is
that the platform technologies that we’ve developed address in meaningful ways
about every significant goal for improvement than one would hope for from the
RF transport portion of today’s and tomorrow’s complex mobile wireless devices.
At the AeA conference from which one of our sessions will also be
webcast, we will discuss in more detail why there is a growing belief among
industry experts for the need for software definable radios, and how our
technology uniquely addresses that need right now. Why experts believe that unique
devices will be required to support the convergence the industry seeks, and how
software definable devices enable that vision. We will provide an update on why
the efficient use of power in generating 3G and 4G RF transmissions is still
lagging way behind the goals of marketers and consumers alike, and why that
piece of the wireless product being efficient is so important, and how far
ahead ParkerVision is in delivering those efficiencies right now.
We will discuss the types of application that both veteran
wireless industry giants and industry giant newcomers are looking to make
common place, and why the legacy RF transport technology of today gets in the
way of enabling the optimal consumer experience that many of these companies
dream of delivering to their consumers and how the new architectural approaches
of our D2P and D2D technologies go a long way toward resolving those
shortcomings.
ParkerVision’s investment to build the portfolio of IT and
supporting hardware that we have has been a good one and an investment that we
believe will continue to grow significantly more valuable as adoption of our
offering converges with these important industry trends. Let me close by
saying, we are gratified and extremely encouraged by the pace and progress of
our initial contract win for D2P, our relationship with ITT. In addition to its
success on its own merit, it provides a solid roadmap for our company as we
close in on our first design win in our primary target market.
Just as importantly that market continues to evolve and grow in
the direction that we believe, plays into the strength of ParkerVision. More
players for a variety of reasons are looking to gain a leg up as we move
towards 3G and beyond. Finally, we have every reason to believe that we are
ever closer to finalizing our initial design win in the wireless handset arena.
I hope that you will review our AeA webcast as it should help you
get a good understanding of why ParkerVision’s technology has the potential to
become -- to continue building shareholders value for the near and the longer
term.
And now I would like to open up this call for your questions.
Operator: And our first question
today will come from Michael Donahue of Emerging Growth.
Michael Donahue: Hi guys.
Jeffrey Parker: Hi Michael.
Michael Donahue: In terms of contracts
and OEM deals, how is the picture look now compared to last quarter, is it
still 2 to 3 are you seeing companies that are close to signing a deal or how
did that look?
Jeffrey Parker: There are several that
we are negotiating with and Michael, it is far enough along that’s why I am
willing at this point and Cindy is willing to allow me to say that we are
pretty confident that we will have a need for a special call to announce
anything that’s material regarding those.
Michael Donahue: Okay. Can you just give
me sort of a picture of like when your prospective customers expect to have
product on the shelves or what’s their goal to have ParkerVision’s technology
designing into products that will be on the shelf and the timeframe its going
to take from a deal to be signed in order to get product to market some sort
of, so we can take a look out?
Jeffrey Parker: Sure. The applications
that people are looking at still are in the cellular 3G space. And we’ve been
iterating away on ICs and implementations anticipating these will be our first
customer, so which we can help them get to market more quickly instead of
starting from back from a further place. It is reasonable that with certain
customers we are talking to that they could start incorporating ICs that have
our technology in them and I think 12 months after signing the deal, maybe some
preproduction sampling a little bit before then and kind of ramping from there.
Michael Donahue: Okay. That’s all I
have, thanks.
Jeffrey Parker: Okay, Michael. Thanks.
Operator: Our next question will
come from First New York Securities, Greg Lewin.
Greg Lewin: Hello, I just want to
go through in the -- there has been a lot of public commentary recently from
Google and I want to use it as a template if we could, because there was a --
they had an announcement today where they must have spoken about 20 vendors
both hardware and software who are participating in their initial product
launch, which is not their phone, but their open platform.
Jeffrey Parker: Right.
Greg Lewin: And in fact just
yesterday in the Sunday New York Times, their principal -- Mr. Reuben came on
and was discussing his passion in developing a phone that was -- he used the
exact phrase “a complete digital system”, I don’t believe that could have been
a journalist coming up with that, I don’t imagine a journalist would not know
that a system wasn’t completely digital in a cellular handset? And in your last
call you spent a lot of time quoting Steve Jobs and the inadequacies that he
was quoting on why he chose the system he chose for the iPhone, and I am
wondering, there seems to be obviously the drum beat as soon as Apple and Google
hit the trading floor these companies whether they’ll be named LG, or Samsung
or Nokia, they know that the temperature is rising regarding competition and
what the reticence is then in signing a deal or why these other people who have
Google is able to announce 20 partners all of which by the way seem to signal
the need for more battery life and yet it doesn’t seem to be a topic that is so
germane to their conversation, is the awareness sufficient or are we missing
something about this relative to the value that you add to the proposition?
Jeffrey Parker: Greg, let me try and
understand your question. So is your question, does the OEM community
understand and appreciate the need for longer talk times and greater battery
life in 3G products and beyond, is that what you’re saying or...?
Greg Lewin: Yes, and where there
has been public announcements with public partners that obviously you haven’t
participated in which if you analyze a Google phone and their expectations for
these things or as we saw with Apple which what came out, the need for battery
life and power consumption, these are critical variables and yet haven’t been
driven quite to your doorstep yet when you seem to have a component of the
solution that would directly impact some of the questions that leave them
asking?
Jeffrey Parker: Well let me say this
and just about as much visibility as I can give and still be appropriate, when
I look at what’s pushing the next deal, ParkerVision -- conclusion with
ParkerVision and I see kind of how this is all kind of coming about. It is
being helped along by various influencers all throughout the food chain. In
previous calls I have talked about the fact that we launched a year ago I
think, serious activities to educate network carriers about what we bring to
the mobile handset and the mobile device, and the carriers a year ago or even a
little bit longer, were sitting there going, well, you know, we think that talk
times are going to be 4 hours, 3.5 hours, 5 hours and then after these devices
actually get deployed in real consumers’ hands it turns out it is more like an
hour and a half or an hour. So, some of it is the difference between people
hearing what’s going to be the reality and actually then experiencing it and
then also becoming influencers to the people who are going to incorporate the
technology into actual solutions.
We never expected a network carrier to be a direct purchaser of
our technology but we’ve always hoped they would be influencers. There’s other
companies in the space that we’ve been engaged with and I believe when we look
back on our first commercial handset design win and then beyond that we will
find that many of the people we spend time with who are influencers played a
really important role in getting those first deals done. So your observation
about Google is one really of -- there
is a company that’s going to be an influencer for a lot of companies to go off
and build handsets that enable another experience for the consumer even though
Google themselves may never build specifically a handsets. And there’s a lots
of companies out there now that are pushing OEMs to do things, to give
consumers a better experience that allows them to uptake more of the network
that’s out there in 3G, and to build the momentum so that there is money for 4G
and beyond.
Greg Lewin: If we were able to ever
access decision makers at firms like Apple and Google would we find out that
they are aware of ParkerVision?
Jeffrey Parker: There’s no question in
my mind that they would be, I can’t say that all of them would be but certainly
some of them would be, yes.
Greg Lewin: And the advantages of
the platform that you’ve been describing are things that would be somewhat,
they would be aware of ?
Jeffrey Parker: Oh yeah.
Greg Lewin: And is there any other
person that you have come upon both publicly or privately who you think offers
the advantages that your new science offers?
Jeffrey Parker: No and we are going to
discuss that in the AeA conference, that’s why I mentioned the webcast. I think
it would be helpful to people to kind of get their arms on an update around
what is out there in the marketplace and how does it stack up. Because people,
like we have said, are continuing to making a little incremental increases but
in the overall scheme of what needs to be done its far, far short from what we
will provide. I mean if you go back and look at what Job’s quote was, “I want
five or more hours of talk time on a 3G network”. Well those incremental gains
are not going to get them anywhere near that.
So, we’ll discuss that and we are also going to discuss a little
bit more about where does the power consumption in a handset come from because
we get calls all the time from investors reading about improvements in various
subsystems in a handset, improvements in baseband processors and things like
that. And what will help you understand in context what percentage of the total
power consumption is that and if I cut the baseband processor power consumption
by a third, about 50% does that get you there and the answer is no, not even
close. So we’ll help you get visibility in our webcast on that -- on that very
topic.
Greg Lewin: Thanks Jeff.
Jeffrey Parker: You bet, thank you.
Operator: Have a question from
Jack Silver from SIAR Capital.
Jack Silver: My question has already
been answered, thank you.
Operator: Next up is Mark Gaskill
from MKG Financial Group.
Mark Gaskill: Hey Jeff, Mark Gaskill
at MKG Financial.
Jeffrey Parker: Hey Mark.
Mark Gaskill: Hi, I just had a quick
question, its sounds like thing are moving forwards and that’s always good to
hear. With the contract that was picked by ITT obviously there is other
directions that ParkerVision can go. I guess I am just curious, there has been
a lot of products, we see a lot of advancements made in the [inaudible] with
new chipset products, has there ever been any conversations with these
companies as far as joining forces and obviously some of these companies would
probably like to move forward, and if they see ParkerVision coming obviously
that joining forces might make a whole lot of sense?
Jeffrey Parker: Well, you didn’t ask
the question exactly the way I am going to answer, but I think it will still be
helpful to you, so I can’t use -- I won’t use specific names, because we’re
under non-disclosure with I think everybody we are talking to but,
categorically are we in dialogue and some negotiations with companies who are
baseband companies, sure play PA companies, companies who have transceivers,
and handset companies the answer to all of those is yes. And I mean, there is
interesting reasons why baseband companies would be interested in our
technology and there is interesting different reasons why even pure play PA and
transceiver companies would be interested. So, yes, those companies are
definitely categorically keeping their eye open for where is the industry
going, whether the next generations of technologies that are interesting.
Mark Gaskill: Does this help you in
your move to -- and talks with OEMs?
Jeffrey Parker: Oh, absolutely.
Mark Gaskill: Okay, pretty much done,
thanks Jeff.
Jeffrey Parker: Yeah, thank you.
Mark Gaskill: Good bye.
Operator: Next is Stephen Hansel
from Eclectic Investment Management.
Stephen Hansel: Thank you. You spoke
about things that are effectively too secret to tell and describe the ITT
agreement as material though it doesn’t appear to be to me on the basis of its
percentage of your expenses or certainly the net revenue as a percentage of anything.
And what I am trying to understand is what’s the basis -- my first question,
what the basis would be for your doing some sort of interim announcement of the
sort you described earlier and of the sort you did with ITT, obviously on sort
of a conventional materiality basis it doesn’t qualify?
Jeffrey Parker: Well many of our
investors in these conference calls, I don’t know if you have listened to these
in the past or not but as we are a pre-revenue company one of the things they
look for as key milestones is are you getting design wins, is the technology
being adopted, and it’s a question -- and when will we hear more about that and
certainly from an investor view point of not being inside the company, not be
able to go in OEM sales calls with us, not being able to hear what the OEMs are
saying, not completely understand the process, we try to give as much
visibility to the investors as we can and so that everybody has kind of the
same view at the same time.
So, as I said in this discussion today, can’t guarantee it because
I don’t have the pen of the other parties in my hand but from what we can see
of the cooperation and the enthusiasm and kind of how the agreements are
progressing and the speed at which they are progressing, I am optimistic, very optimistic
that we will have another call to announce our first design win in the wireless
handset space.
Stephen Hansel: My second question
relates to the patents and their age, you show about $10 million on your
balance sheet related to the patents, and can you give me an idea of what the
age of the really key patents is?
Jeffrey Parker: Oh boy, the D2D
receiver technology, I means it’s a -- it is a range, the D2D receiver
technology, probably those initial patents started issuing 3, 4 maybe 5 years
ago something like that. And the D2P transmitter technologies started issuing
just this year. We have lots and lots of additional D2D and D2P patents
pending, I think around 100 total and if you look at kind of historically over
the last 12 to 24 months, you’ll see that we issue maybe four or five patents a
quarter, so I hope that gives you a little bit of a sense that that’s kind of
the intellectual property portfolio standpoint at this time.
Operator: Our next question comes
from Bob Sales with Alan King Capital Management.
Bob Sales: Exciting progress,
couple of questions Jeff, in the last conference call, I think it was the last
one, you said that, that quarter was a partial quarter with the ITT
relationship and its kind of showing itself this quarter where I think the
revenue if I am not mistaken is up -- nicely up sequentially. I guess my
question is what should we expect going forward with that project in terms of
the revenue trajectory obviously realizing you can’t divulge everything but
starting with this quarter a kind of a base line?
Jeffrey Parker: It honestly depends on
some of the decisions that they have before them right now in terms of how much
involvement they want in our designing circuits and other things for them
versus how much of that they decide to do internally and versus how much they
end up picking off of some of the things we’ve already done for the commercial
market space all of which are options that they are studying right now.
Bob Sales: Right, so for the next
quarter do you expect the revenue then to be about the same or be down or up?
Jeffrey Parker: Honestly I didn’t -- I
did not even take a look at that to prepare for that. I don’t know, that’s a
good question I wish I had the answer for you right now but I really don’t have
that at my finger tips.
Bob Sales: Do you still have
engineers engaged at ITT to the same level that you did during the quarter?
Jeffrey Parker: We do, but that again
that goes up and down depending upon exactly where their decisions take them.
Bob Sales: All right. Okay, good,
good. Second question for you is, you mentioned that in terms of tackling the
huge opportunity in the wireless handset space you have talked to baseband guys
as well as pure PA guys about this and we have a pretty good relationship with
some of the PA guys despite the work we do the investment space in. I guess the
question I have, what I want you to help me work through is in talking to
RFMD’s Skyworks, ANADIGICS who comprise 90% of the power amp business for
handsets they have pretty much stated that they have looked at the ParkerVision
technology and didn’t find -- didn’t really see a need to adapt it for their 3G
progress and I am curious whether that’s consistent with the reactions you have
had, whether they were talking to the wrong folks, or whether or not there is
some piece of the puzzle we are not seeing?
Jeffrey Parker: You know, I don’t
honestly know who these guys are talking to in those companies, and I am
certainly not at liberty to say which companies in that space we’re talking to.
I can only tell you that it wouldn’t surprise me if one of our future customers
comes out of that space.
Bob Sales: Right, but you have
indeed had pure PA companies that have been interested in your technology?
Jeffrey Parker: We have had very
excellent dialogs with all those categories.
Bob Sales: Right.
Jeffrey Parker: And continue to.
Bob Sales: Right. Have you ever
considered going down the path of just acquiring a power amp company as a way
to introduce your technology?
Jeffrey Parker: There is all kinds of
possibilities for the company in the future, but right now our focus is get
those first design wins in the boat then we will have more options in front of
us that I am sure we will be able to take advantage of.
Bob Sales: Okay, and then last
question and I’ll turn the table to someone else. As we look at the progress of
your attempts to commercialize the technology over the first couple of quarters
I think, we heard that the technology was going to be one of low power usage
for GSM, and then I think in the last call, there was a talk of more of a bias
towards 3G technology and the needs of the exploding marketplace. Today you
said 4G; I am just curious how you define 4G?
Jeffrey Parker: Okay, when I discuss
3G, I am really saying, those are wide band CDMA, or CDMA 2000 and often times
those are including backward compatible EDGE and GSM applications. When I talk
about 3G holistically that’s what I am referring to.
Bob Sales: And 4G?
Jeffrey Parker: 4G is still being
defined but it is going to be likely the combination depending on who the
network carriers is, of either with emerging is known LTE, long term evolution
or Wi-Max or some variant of Wi-Max.
Bob Sales: Right and so my question there is, if the 3G
handset market is a 100 million phones in ‘07, ‘08 timeframe and the main power
amp companies are developing as we speak very power efficient PAs that have to
go into the handset, how do you view your opportunities to participate given
that RFMD, Skyworks, ANADIGICS are all as we are today realizing, growing
revenue in that area without adapting to your technology?
Jeffrey Parker: Well, it is
interesting. I think when you look back on this you will find this is true I
think of most any advancements in technology, you have your first movers and
people who have vision and you have companies who would rather sit back and see
if others do it and then they jump in later. I mean I have had companies whom
we are talking to, who will continue to talk to us and say “you know we’re
interested, we’ll probably become a customer but you know something, we are not
going to be your first customer since nobody else is doing it, we don’t have to
do it” and that’s an approach, and some people are very successful about that
approach and there are other people who say “I like what you got and I am going
to use it to distinguish and differentiate myself from the competition” and I
mean that what makes the world go around. Not everybody has the same business
model or the same strategy.
Operator: Our last question for
today will come from Jim Whitten with Laidlaw.
Jim Whitten: Hi Jeff.
Jeffrey Parker: Hi Jim.
Jim Whitten: Two questions. First
question, is roughly if you do get a contract in short time you consider that
it would be sizable, size in scope?
Jeffrey Parker: All of the ones that I
am thinking of are sizable in scope.
Jim Whitten: And secondly if you
were in the short term to get a contract would you see other contracts shortly
thereafter?
Jeffrey Parker: You know that’s a good
question Jim. I thought about that earlier because I thought such a question
would come in today’s call and from a 30,000 foot view here is how I am looking
at it and I think it will play out this way. If you kind of look at when we
started going out and soliciting interest in this technology in the handset
space or in the industry wide space it was probably till we got our first
agreement 18 months, 20 months something like that and I think if you look now
from the time that agreement was signed until the second one, I don’t know
exactly the day its going to be signed lets just say that it will be maybe six
months, seven months whatever, okay, eight months. So look at the time
compression between the first and the second. I think you can see that time
progressing as we move down the path and some of it is because there are
companies that are sitting there on the sidelines going “I don’t have the
pressure to do anything, there isn’t anything out there that is better, so I’ll
wait and see if someone else does it”. And some of those companies I believe
will come off the sidelines when you get your next customer and say “you know
what, I guess I need to get moving now”. So, I do think that that will happen
and I also think it’s a function of ParkerVision has been put through a lot of
due diligence by some of these companies and it creates a real, a very large
body of information that people need to make the decision and that obviously
make the decision for the next follow on company a lot quicker and a lot
easier. So yes, Jim, I do think that you’ll see the second agreement, will help
you get the third and the third will help you to get the fourth and industries
tend to move a little bit in a herd mentality and that would not surprise me at
all.
Jim Whitten: If we go back to the
first question if you anticipate a sizeable sign for the first one wouldn’t
that be an impetus for the second and third one?
Jeffrey Parker: One would think, one
would certainly hope so, and I think that’s not an unreasonable thought.
Jim Whitten: Okay, thank you.
Jeffrey Parker: Thank you.
Operator: And that does conclude
the question-and-answer session today. Ladies and gentlemen thank you for your
participation and Mr. Parker I’ll turn the call back over to you for any
additional or closing remarks.
Jeff Parker: Well to those of you
who are out in the Bay area at the AeA conference I look forward to seeing many
of you tomorrow and the next day and for those of you aren’t attending the AeA
conference I hope you will take time to go on our website later this week and
take a look at the webcast so that I think it will be helpful in kind of
bringing up to seed on again where ParkerVision is positioned in the industry
and what our opportunities continue to be to grow significant shareholder
value. So thanks for your support and for listening in and have a good day.
Bye-bye.
Operator: Once again thank you
all very much for joining us today. That does conclude the presentation. Have a
great afternoon.