Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Your first question comes from the line of Brett Hodess of Merrill Lynch.
Brett Hodess - Merrill Lynch
Good morning. Art, you gave us quite a bit of color on the LSA business. Yet, the orders in the quarter on the LSA side were only about 9% of the new orders. So, can you talk to us a little bit about how you expect this rollout of orders to go as we look at the 45-nanometer nodes starting to make purchases?
Art Zafiropoulo
Sure. We are actively involved in about a dozen orders currently and it’s really a timing issue. A couple of these orders are for multiple systems, and primarily, they are from the Pacific Rim. That includes both Japan and Asia. We are not seeing the same strength in Europe or the United States, but we see extremely strong strength in the Pacific Rim. As I mentioned where we are working on about a dozen system orders currently, and it’s just a timing issue.
All of these orders are, with the exception of one new customer are from existing customers currently in production with 45 and currently planning on ramping up for next year. So, some would like the deliveries this year and some would like the deliveries of course early next year.
Brett Hodess - Merrill Lynch
So, can you tell us what the timing now is between an order and a shipment and revenue recognition, A. And B) also obviously this is about 17 logic companies, can you give us an update on memories looking at the LSA?
Art Zafiropoulo
Sure. We are still requiring about almost two months for the acceptance at the customer site, and the bill cycle is in the three-month range here. Now, we expect to shorten that since we’ve installed a number of machines like one at a time at several of these customers. So, we expect to reduce the acceptance period on the second and third machines as they go in. And we’ve experienced that in the past. So, we expect to improve that, but currently it’s a couple of months of acceptance and about a three-month bill cycle in the LSA systems.
Memory; we have seeded the memory systems. We don’t expect to see any major business issue in memory. However, we are expecting to see memory increasing next year. We are making progress. We still have a way to go. But every expectation is that we believe we’ll put into next year’s plan. Now, whether we actually put it in our sales portion of our plan, it remains to be seen and we need a little bit more information and we should give that guidance at our analyst meeting in New York.
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