Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Matt Sheerin - Thomas Weisel Partners.
Matt Sheerin - Thomas Weisel Partners
Before I get into some questions, you normally provide specific results by product in region and you haven’t’ given that. Will that be provided in the supplemental information after the call?
William E. Mitchell
We can definitely talk about that if you’d like after the call.
Matt Sheerin - Thomas Weisel Partners
Yes. That would be helpful. Mike, you talked about the book-to-bill being around one for components yet the midpoint of your guidance is down in the mid teens, certainly a lot worse than seasonal. Is it just a function of sales falling off dramatically at the end of September so that book-to-bill is even but you’re really not getting much at all in terms of forward orders and it’s just a turns business right now? If you can elaborate there.
Michael J. Long
The market itself has clearly slowed down and at the end of the third quarter lead times were within the normal range. Book-to-bill was slightly above one globally which is ahead of last year but in a weaker macro environment. The book-to-bill in Europe was down modestly. North America if you will held above one. Then Asia Pac was in line. In Europe though the market remains weak and what we’re seeing are shorter lead time orders that are more book ship type orders and a changing of how those orders are coming in.
We also had our survey that we talked about of 300 customers in North America and we’re also expecting a potentially greater volatility given how that business is moving more towards the book ship. Overall really the market is looking pretty cautious and our customers and suppliers are very much evaluating their business needs. We had also indicated after a survey of many suppliers that they’re seeing the same effect so we do expect that book-to-bill to get more volatile as we get into December.
Matt Sheerin - Thomas Weisel Partners
It just seems like it’s not as relevant right now because visibility is so limited.
William E. Mitchell
I think that’s exactly right. Book-to-bill in many of the indicators is less relevant in a really volatile time because more of the business goes towards book ship. That’s happening. Visibility gets lower and since the visibility is low book-to-bill is not as good a leading indicator as it often is. We’re monitoring the trends carefully to make sure that we’re properly configured particularly with inventory.
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