Sam Nicholls (Quillen Securities): Do you think the new more stringent antipollution regulations in China will be strictly enforced and have you quantified the opportunity?
Bruce Wilkinson: We think it is coming. We have recently given them a license for our SCR, believing that the NOx issue is real and that they are going to begin to tighten that.
Sam Nicholls (Quillen Securities): Is the opportunity for licensing revenue exclusive?
Bruce Wilkinson: We have a 50-50 joint venture that we manage and it operates out of the technology licenses that come from B&W back in Ohio. We have successfully built super critical boilers there that we have never build in this country, using our design.
Brad Handler (Wachovia Capital Markets): On the backlog outlook, have you factored in the potential for customer delays and more slippage?
Bruce Wilkinson: We have a project review methodology where every month all the major projects go through a project review that covers productivity target schedules. When we know we have a change order being negotiated, you see no profitability during the time frame that that change order is being negotiated and signed up.
Brad Handler (Wachovia Capital Markets): Any comments on the AP CO2 capture relationship?
Bruce Wilkinson: They and several other utilities are partners in what we are doing at our 30-megawatt test facility up in Alliance, Ohio, and AEP, is very much one of those. |