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LTX Corp F2Q08 (Qtr End 1/31/08) Earnings Call Transcript

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2008-02-25 14:29:07.0

Tags: LTX Corp.

Question-and-Answer Session

Operator

(Operator instructions) And your first question comes from the line of Patrick Ho with Stifel Nicolaus. Please proceed.

Patrick Ho - Stifel Nicolaus

What a nice quarter guys. First off, can you give me what the level of turns business you guys are averaging over the last few quarters?

David Tacelli

Yeah Pat, this is David. If you go back to last three to four quarters have been between 60 to high 70s as a turn piece of business and the next question you probably have is what do we expected to be in the April quarter. It's somewhere in the 30%to 40% range.

Patrick Ho - Stifel Nicolaus

Okay, great. So, you do have some room in your backlog over the next few months from your answer right there.

David Tacelli

That's correct.

Patrick Ho - Stifel Nicolaus

Second question, I know you've been talking about your instrumentation capabilities and the new introductions that you are going to be releasing over the next year or so. Are these targeting some of the existing customers you had before the X-series of products, or they targeting specifically some of the new customers that you won over the past two plus years?

David Tacelli

The simple answer is both. Some of the instruments have actually helped and helped us penetrate existing accounts and new divisions, and new product groups in existing accounts and also some of the instrumentation has allowed us to go after customers in the past that we would not have been able to achieve without the instrumentation.

Patrick Ho - Stifel Nicolaus

Great and my final question I know Mark you've been the spearhead on this transition, the outsourcing overseas. You mentioned last quarter that one of the goals that you're trying to get was the supply chain for this current quarter. What are some of the metrics we should be keeping an eye of April quarter?

Mark Gallenberger

For the April quarter what you should start to see at that point in time, is more boards being moved overseas and the mechanical and the test has being done by that timeframe and then once we start getting into our fiscal Q4, what you'll start to see is the system integration work in the final assembly and then ultimately the drop ship to the customers. So those will be the major milestones between now and August.

Operator

And your next question comes from the line of Timothy Arcuri with Citi. Please proceed.

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