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[Music]
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cubic Corporation is a uh billion dooll
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Niche business we just eclipsed a
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billion dollars this year we have
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principally three pieces of business the
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first piece is involved in uh Fair
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collection business for major rail
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systems around the world Washington New
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York Hong Kong Sydney Singapore London
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we also have a piece of the business
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that uh is a defense Services business
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this business uh is instrumental in
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training our troops around the world as
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well as providing logistical support and
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the business that I oversee which is
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roughly a third of cubic portfolio is
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defense systems and products were
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principally known for three things the
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first thing uh two are related to
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training the first one was post Vietnam
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we invented the Top Gun system and we've
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been instrumenting fighter pilots their
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airplanes for many many years we've
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deployed those systems in 45 countries
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in the late 80s we took that same
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technology and we moved into the into
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the army uh we uh did instrumentation
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for the combat training centers got into
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the miles business and have deployed
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those kind of systems for 45 countries
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in addition to that we're a niche
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supplier of communications equipment we
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provided the data link on the joint
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Stars program the aster program we're
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involved in the UAV world and we we
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picked Niche
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spots well um in the defense
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applications business we're involved of
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training the force for the US and its
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allies and unfortunately our world is In
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Harm's Way and so training continues
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people need to be better trained and our
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training actually has become more
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Mission rehearsal so we we have some
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growth in our business there the other
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portion of of our business is involved
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in intelligence surveillance and
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reconnaissance and that's a very big
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ticket item so the fact that we build
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things um we don't have as much risk uh
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small business etc etc and our business
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will continue to
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grow a lot of our clients in the US want
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off-the-shelf products quote
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unquote uh often the requirements don't
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match this other desire so the the
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challenge is to provide the very best uh
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maintained margins uh not spending a lot
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of money on research and development
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normally we shared that with our clients
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and today there seems to be less of an
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appetite to do that fortunately we have
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a huge Geographic footprint being in 45
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countries and we try to leverage all of
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those investments from these various
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Nations to ensure we're providing the
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very best so in in a strange sense the
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non-recurring that we'll do overseas is
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applied here in the
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US stopped uh
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I think we can mitigate I think we can
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slow but if something is connected
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electronically it's a timing question so
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I think we can slow people down I think
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we can anticipate but the enemy
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continues to adapt and so it's a very
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difficult
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issue I I think that uh as we continue
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to be In Harm's Way there will be
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pressure
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the procurement and R&D accounts and so
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I think there will be uh slight
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decreases not major decreases but slight
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decreases affecting the defense
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industry we have very good Core
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Business um we could argue that uh since
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we have such large market share in our
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business that uh we need to get into
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other businesses so we're if you will
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betting on getting into other growth
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businesses we're looking at uh cyber
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business we have some interesting
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devices in the Tactical environment for
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situational awareness and combat ID and
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so it it it is critical that we move
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those things over the line to have other
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businesses to chore up our main business
