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Molex F3Q08 (Qtr End 3/31/08) Earnings Call Transcript

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2008-04-22 19:10:11.0

Tags: Molex Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Mr. Matt Sheerin with Thomas Weisel. Please proceed.

Matt Sheerin - Thomas Weisel

Yes thank you. My first question to Martin is related to your comments about demand in the quarter. Aside from those two areas where you saw some pushouts, it sounds like revenue came inline with what you had expected. Could you talk a little bit more in detail about what you saw specifically in the quarter, and then on handsets where you've certainly seen some more volatility, but I know that you've worked to diversify your customer base. How did that play out? You're seeing some other suppliers talk about weakness to companies that you serve in the handsets space, so could you talk a little bit about that?

Martin Slark

Sure, thanks Matt and thanks for the question. In terms of the revenue trend, we saw -- if you look at our overall revenues, we saw the typical slowdown during that Chinese new year period. It wasn’t significant, but certainly some of the weather issues I’m sure you read about, impacted some of the manufacturing out of China, and certainly extended the impact of Chinese New Year. And as you probably read, regarding going forward, there is some discussion about limiting the length of Chinese New Year holiday to lessen the amount impact.

But what we were pleased with was that our revenues came back strongly in March, and that our bookings remained consistent throughout the quarter. And certainly when you're reading, what appears to be very US-centric press here, the patent we’ve seen in terms of order demand across most of the segments we serve seems to be fairly strong. In terms of the cell phone market, in particular, sequentially in terms of about cell phone sales that was down slightly, but our year-over-year bookings in the quarter were up and we think that bodes well for the rest of the year.

And as you said, the extent that they were down was attributable primarily to one customer. Without that customer, our revenues would have been up for quarter. And if you look at our cell phone bookings, they are up double-digit as we go into the next quarter. So, with the diversification in place and less dependence on that single customer, we are a lot more confident about our overall cell phone revenues as we project forward for the rest of the year.

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