Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Bill Ong - Merriman.
Bill Ong - Merriman
So I understand that your visibility is limited to 2010, but can you offer some color on what type of seasonality can we expect in 2010, maybe go through some potential scenarios on the Lean tools as well as Photonics?
Kevin Fairbairn
So let me start with the equipment side. We would expect the majority of orders and deliveries to be in the first half for capacity systems because people typically want to get production in place for the last two quarters. In terms of incremental R&D systems they can occur anytime during the year.
From a Photonics business we continue to see that business growing, so overall we would expect quarter-upon-quarter growth through the year, there maybe occasional flat quarter-to-quarter, but in general will be up into the right.
Bill Ong - Merriman
Then on the solo business, on the high level you have expectation on when you can start recognizing revenues over the next year or two or you can just give us some sense of time periods when you can get some revenue recognition there?
Kevin Fairbairn
We would expect any systems that we ship in 2010 to get revenue recognition within one to two quarters, because the basic tools, 200 Leans or our semi mainframe are well proven., and we would expect whatever specifications we sell them to, to be achieved fairly quickly. Once the customers’ starts using the tool for which it was sold by the R&D production, then our revenue recognition would enable us to recognize that tool as revenue worthy.
Operator
(Operator Instructions) Your next question comes from Rich Kugele - Needham & Company.
Rich Kugele - Needham & Company
A couple of questions; I guess first, when it comes to the upgrade business that you saw on the quarter that really is all 200 Lean, there is no upgrades that are occurring on the 250 Bs anymore, right?
Kevin Fairbairn
In the quarter we sold 200 Leans. In the future we wouldn’t rule out that some of our customers are trying to prolong the use of legacy systems, might not do some upgrades, which can potentially be reused on 200 Leans.
Rich Kugele - Needham & Company
The upgrade could be?
Kevin Fairbairn
Yes, for instance the sources that we used on the 250 Bs can be used on 200 Leans and we continue to do upgrade business where we improve the efficiency of the process and we reduced the cost of saving [Audio Dip]. So they are fairly soft paybacks that people will often buy sources that can be used later on 200 Leans.
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