Peco II, Inc. Company Profile | PIII Company Information

The first-quarter financial performance reflects the impacty of the weak economic conditions that began to impactg our industry in the fourtyh quarterof 2008. We had a weak fourth-quartere backlog coming into 2009. As we entere d 2009, January product bookings continued at significantly reduced January 2009 product bookingswere 43% below Januaryh 2008 levels. While February and March producft bookings increasedover January, they were down 10% from 2008 The weak product bookings were partially offsetf by strong services bookings. Services bookings for the firsr quarter 2009 wereup 67% versuw the first quarter of 2008.
The strong services bookings growth results from a significantg service provider contract award made in the fourtb quarterof 2008. Given the weak economic environment, we took aggressived cost action by reducing the workforce by 25 andmanagingg out-of-pocket expenses resulting in a $0.2 millionm reduction of our operating expensexs in the first quarter of 2009. Thesde cost-cutting actions are expected to result in savingaof $1.2 million on an annualized basis. Durintg the period, we continuedr to expand the versatility of our Quantum Power System by developing a distribution panel for use inlarge applications.
The Quantum Consolidated Syste m provides up to 24 load distribution positions for one to four Quantumjpower shelves. Applications for the new product includecell sites, small central offices, and controlled environmenrt vaults. …
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