Question-and-Answer Session
Operator
Our first question will come from the line of Jim McIlree with Collins Stewart. Please go ahead.
James McIlree – Collins Stewart, LLC
I want you to know that I win a bet by saying Happy Valentine’s Day gentlemen. Can you tell me what’s happening with the XMT? Why is it being pushed into the latter part of the year?
Peter J. Ungaro
The XMT as you know we delivered our kind of first beta system this year and that we have to do a full process of re-spin on that product as we’ve talked about. So that’s going to take us a little bit longer than it took us to do the Black Widow or XT5h development process. It’s currently in development; we’re working through that process and expect to be delivering systems later on in the year with that re-spin that we need to do on the processor.
James McIlree – Collins Stewart, LLC
And I think we’ve talked about this before but is there a risk that you’d have to re-spin it again after this re-spin? And then before we can get to that one what’s the timing of the re-spin that you have scheduled right now?
Peter J. Ungaro
As I mentioned we’re in development of that, we’re working through all of those times. There’s always a risk that we potentially have to re-spin again and as we mentioned in the call we’re not planning any significant XMT revenue and we are expecting significant revenue growth so we’re happy with being able to balance those two things.
James McIlree – Collins Stewart, LLC
And the target customers for that is it possible for them to go to another system while waiting for this system to get ready for market?
Peter J. Ungaro
The XMT has quite unique capabilities and it’s a real differentiated system I would say out there. While we’re working with those customers to continue their applications development and that’s one of the reasons that you saw us ship a beta system out earlier this year we’re really targeting their applications for this specific platform in the market and there’s really nothing else out there that can do what this machine can do.
James McIlree – Collins Stewart, LLC
On the op ex side, Brian, you’re talking about R&D up 20%. What about the other two expense items? What’s your target for those for the year?
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