Question-and-Answer Session
Operator
(Operator Instructions) Ramesh Misra with Collins Stewart, please go ahead.
Ramesh Misra – Collins Steward LLC
My first question was related to the proportion of your contactor revenue as part of your FOX sales, I know you didn’t provide much of a breakdown on that but is it reasonable to think that it’s on the order of about 25% or in that ball park in Q3?
Rhea J. Posedel
I would say that most of the shipments were related to the FOX-1 system. I didn’t really estimate the percentage but most of it was probably the FOX-1 system.
Ramesh Misra – Collins Steward LLC
And you did say that in Q4 you expect the proportion of contactors to rise -
Rhea J. Posedel
Correct.
Ramesh Misra – Collins Steward LLC
- meaningfully. Again, perhaps really looking for guidance but what kind of a ball park should we think of? Could we start thinking of that approaching a quarter of the FOX system revenues?
Gary L. Larson
I think generally, again, we’re not planning on breaking out the splits between contactors and systems. As we have said in the past, a system is generally going to sell for about $1.2 million. A contactor can really vary quite a bit, it can go from $300,000 up to $500,000 so if a customer is buying one contactor per system you’d generally be looking at about 25 to 30% of the total being contactors. But oftentimes we see a customer buy more than one contactor for a system.
Ramesh Misra – Collins Steward LLC
Yeah, that’s the basis that I was getting to, that 25% kind of number, Gary. But I would presume that there is a little bit of pent up demand for the contactors. Is that correct?
Rhea J. Posedel
That’s correct because the customer has purchased more contactors than systems. As they add new device types they need to continually add new wafer pack contactors. We expect that to continue over the long term. That the orders or the shipments for contactors would probably exceed the system level shipments.
Ramesh Misra – Collins Steward LLC
On the FOX-15, are you pursuing other customers in that regard?
Rhea J. Posedel
We are for both our FOX-15 and FOX-1, yes. We are actively aggressively going after different customers for different applications for these products.
Ramesh Misra – Collins Steward LLC
Okay. In terms of pricing obviously since you’re pretty much a sole source supplier of these kind of tools but given the overall weakness in the semicap equipment environment are you seeing any more aggression or any more pressure in terms of pricing from customers?
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