Analogic Corporation F3Q08 (Qtr End 04/30/2008) Earnings Call Transcript

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2008-06-08 15:25:26.0

Tags: Analogic Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Larry Solow - CJS Securities.

Larry Solow - CJS Securities

Can you just maybe talk a little bit more about just the medical imaging market in general? I know the slowdown at the OEM level seems to be pretty considerable and is there potentially like a lag between when you would see a slowdown at that level before it slows down to the component level, so you may actually still see a couple of quarters of volatility there?

James W. Green

The way it works for us is as the units are shipping from the OEM, they pull from us almost on a real-time basis. So, as they’ve been slowing down, we believe that they’ve reached a new level; I would say a new market level. So, we are now seeing that lower level today. So, what we look at then is what’s going on at the market for the overall market both in the U.S. and outside.

And we are starting to see orders start to pickup on the MR side. We expect to see orders start to pickup again from this lower level on the CT side, so we would expect it to be operating at similar levels over the next probably two to three quarters. And then, as orders start to pick up, if you look at the order shipment time, CT is roughly, you would say five to six months MR maybe a little longer.

So, at this point, we think things have pretty well stabilized, of course, what was nice for us is by introducing a new system incremental into a new OEM that actually helped us offset some of that initial downturn in the quarter.

Larry Solow - CJS Securities

Do you expect any impact from the slowdown and timing-related shipment of tomotherapy, to impact you at all?

James W. Green

Well, again as tomotherapy, as their end customer demand continues to grow, we continue to grow with them, as that moves, we move directly with them. So you have access to what they would say.

Larry Solow - CJS Securities

And then just looking at the DR segment, I know it’s time related it is hard to quantify exactly, but first of all, Toshiba obviously is a third customer in the detection, do you have any time line for when they are going to be launching their product?

 

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