Question-and-Answer Session
Operator
(Operator Instructions) Your first question will come from the line of Brett Hodess with Merrill Lynch.
Brett Hodess - Merrill Lynch
Good morning. Art, I'm wondering if you could talk a little bit about the LSA Memory adoption curve that you might expect? What steps do the Memory guys have to go through? Is DRAM going to adopt before NAND or vice versa?
And also giving your views as you commented in a talk you gave last night about accelerating technology change potentially, could the Memory guys start to adopt LSA sooner than you thought previously?
Art Zafiropoulo
Thanks Brett. As I mentioned, we are shipping systems this quarter, and again, those systems that we are shipping at the Fourth Quarter are not revenue, and they are for two companies, one specifically in the NAND Flash and the other in the DRAM and logic area. And the logic area primarily, it's regarding refresh time.
We have done some work in this area and we believe that we can improve the refresh time by insertion of a laser technology within the fabrication. And so now it is a case of integration.
The Memory people work a little bit differently than the logic people. As we look at the total market and the equipment served market in general, only about 7% of the CapEx spending is in the logic area and over 50% is in the Memory area. So, we have not participated in the last few years in the growth of the industry and the robustness that many other companies have seen since we focus in Logic.
As I mentioned in my talk earlier that the Logic is about two generations ahead in technology, so the initial focus to attack the logic market was sound, and still is sound and probably was a very, very wise choice on our part.
A little bit painful in the subsequent orders and they are not rolling in as quickly as we had hoped, but in the Memory area, they operate totally differently.
In the Memory area typically, they will get a system, and they tend to do not as much work in qualifying equipment. They do a lot of work, but not to the extent that the people do in the transistor formation. So since this is Refresh, this is not transistor formation in terms of its application. So it's a new application.
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