Question-and-Answer Session
Operator
(Operator instructions) Our first question is from Brian Alger with Strata Capital Management. Please go ahead with your question.
Brian Alger – Strata Capital Management
Hi guys, good afternoon. Nice quarter.
John Fan
Thank you.
Brian Alger – Strata Capital Management
Rich, just a couple of clarifying points. You mentioned the bad debt expense that wasn’t present in the quarter. How should we think about SG&A going forward? Is that going to come back up into the low fours or now that issue with the customer is resolved, should it stay down here?
Richard Sneider
No. Essentially, there is about $500,000 credit in SG&A expense. So that would normally bring that to a level of about 3.1, which probably the more apples to apples number. And again, that was even a little low for the quarter. So somewhere around 3.5 is really kind of the way you should be thinking about it.
Brian Alger – Strata Capital Management
Okay. So we got a little bit of one-time benefit this quarter just as it turned down on the SG&A line then?
Richard Sneider
That’s right.
Brian Alger – Strata Capital Management
Okay. Great. And then – and looking at the III-V business, obviously a fantastic rebound sequentially; and looking at your primary customers there, certainly their revenues didn’t jump quite that much, although they had nice quarters. Do you think the inventory restocking at the customers is completed at this point or do you think there is further restocking there to be had in the third quarter?
John Fan
Yes, this is John Fan speaking. I think that as the business coming along we are also adding new customers. So we believe that the growth will continue.
Brian Alger – Strata Capital Management
Okay. So I’ll ask the question in different way then, John. How much of the growth this part quarter came from new customer revenues versus existing customers?
John Fan
I probably should not break it down, but we do have new customers coming up.
Brian Alger – Strata Capital Management
Okay. Fair enough. And then just one final one, the consolidation of the new business, what shall we think of that in terms of – net effect on the operating profit line? Is that going to be accretive or dilutive to the net operating profit line?
Richard Sneider
For 2009, it will be really plus or minus 250,000.
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