CAPITOL PROJECTS ON A SLIGHT UP-SWING

BUT RECOVERY STILL SLOW

Q1 was very busy but Q2-3 withered on the vine.  Q4 has prospects to be overly busy again.

The old feast or famine syndrome again...  Q4 of last year was very busy as was Q1 of 2010.  Most of that work was scheduled in late Q3-4 2009.  Then came April. 

After finishing a large MoM preparation project in Houston, it was as if our AGSC phone was unplugged.  We went for about 3 months without much more than an occasional call from a telemarketer.  On the other hand, the local engineering side of the business was booming.  Nothing new/large was being built but a couple of local clients were making some studio changes that kept Jeremy and myself hopping for several months.

Much like last year (2009), 2010 has been basically reversed from most other years as far as ground system project scheduling was concerned.  We are typically fairly slow Q4-Q1 and hopping late Q1 thru late Q3.  The last 2 years have been atypically busy in Q4-Q1 and dead thru the summer.  We normally are preparing several proposals per week by the end of Q1 and then quote requests drop off by May or June.  Again, like last year, we prepared few proposals in the early months and worked overtime in the office July and August trying to keep up with requests. 

Few of our contract clients have seen noticeable improvement in revenue this year while a few others are almost back to where they were before the meltdown.  Attitude seems to be a major factor.  The stations that have continued to sell the same things, to the same people, using the same techniques are struggling.  Stations that have taken on the challenge of generating new business with new services and offerings seems to be moving forward.