Question-and-Answer Session
Operator
Thank you very much. We will now begin the question-and-answer session. (Operator instructions) The first question is from Jenny Yung [ph] from JPMorgan. Please proceed with your question.
Jenny Yung – JPMorgan
Hi, good afternoon.
Bob Lepofsky
Good afternoon.
Jenny Yung – JPMorgan
Some semi OEMs are indicating that shipments to be up for them in the calendar fourth quarter. If that’s the case then when would you see that trickle down to your revenues?
Bob Lepofsky
We would actually see that quite quickly particularly in our extended factory business. As Martin noted, the Automation Systems activity was the area that fell off the fastest. It will also turn around the fastest. In order for the OEMs to make their shipments they need the output of our extended factory activities.
Jenny Yung – JPMorgan
Does that occur simultaneously that their shipments revenue fourth quarter which are revenues to us the fourth quarter?
Bob Lepofsky
If their shipments increase our shipments increase. (inaudible) closely coupled.
Jenny Yung – JPMorgan
Okay. And if I can just squeeze in one more question. You mentioned that you were getting into more solar business. You want to give us a sense of what kind of solar revenue you could generate in like calendar ’08 or calendar ?09?
Bob Lepofsky
At this point we’d stay with the broader definition of what our total non-semi are, heavily influenced by solar because of the vacuum solutions. The vacuum solutions are increasing, but as you know the issue of revenue on new production lines is somewhat uncertain in terms of rate of ramp.
Jenny Yung – JPMorgan
Okay, great. Thank you.
Operator
Thank you very much. The next question is from Timothy Arcuri with Citi. Please proceed with your question.
Timothy Arcuri – Citigroup
Hi guys, a couple of things. You are somewhat unique because you are giving earnings somewhat later than most of your peers, so you have little bit more visibility into the quarter than I think others do at this point. So, my question is if you had guided two or three weeks ago when most of the big OEMs reported would your guidance have been the same or would it have been different than it is?
Bob Lepofsky
I’d say essentially the same. Translated, we have seen no additional deterioration in recent weeks.
Timothy Arcuri – Citigroup
Okay. And I guess the second thing, Bob, there is pretty big uptick in your spares and your services margins and I am wondering – maybe I missed it on the call – but what was the reason for that and is that sustainable going forward? I mean is that the right sort of new margin level to think of in that business going forward?
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