Question-and-Answer Session
Operator
(Operator Instructions) Our first question will come from Gary [Huse]. Your line is open. Please go ahead, sir.
Gary Huse
What drives the top end of your booking guidance for Q2 and what drives your bottom end? Is there any kind of scenario between the two?
Jeffrey C. Benzing
Yeah, there’s big scenarios relative to -- it depends what happens largely in the memory marketplace.
Gary Huse
Okay, well let me ask you a question a different way; you talked about delayed payment terms sort of inflating your AR number here on your balance sheet. Have we recognized the bookings on that delayed payment kind of business? Are we seeing that in Q1? Are you guiding to it in Q2?
Richard S. Hill
We didn’t comment on any delayed payments. What we commented on was we had some delayed shipments which increased our accounts receivable, or delayed shipments that happened late in the quarter which increased our accounts receivable.
Gary Huse
Okay and final question here, Rick; if you look at your Q2 order guidance and you just kind of flat line that throughout the rest of this year, we’re looking like we are heading for a down 25% bookings year year over year. What kind of confidence do you have here that Q2 is the bottom and we could see an up-tick here in maybe Q3 and Q4?
Richard S. Hill
Well, I think from a standpoint of supply and demand, Q2 should clearly be a bottom. However, there are other factors that are impacting what’s going to happen going forward; one being fundamental consumer demand and corporate demand as more and more companies have been coming out with weaker and weaker earnings. And the question will be what will they do to their CapEx, which ultimately ripples to us and gives our customers the confidence to bring on capacity.
I am cautiously optimistic but frankly I was -- you know, am quite surprised with the rapidity of the falloff and the rate at which DRAM and NAND Flash prices are coming back are not as strong as I would have anticipated, although they are coming back.
Gary Huse
Great. Thank you.
Operator
Our next question will come from Jim Covello. Please go ahead.
James Covello - Goldman Sachs
Good afternoon, guys. So Rick, if I go through the scenario of the CapEx cuts today that are happening in DRAM and NAND are real healthy for supply/demand in the back half of this year, how many quarters do you think the DRAM and NAND makers need to see ASP improvement before they will come back to order again? Do you think it’s a length of time that they need to see or do you think that it’s an amount of price increase that they need to see before they are going to start to feel comfortable ordering again?
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