Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, the question and answer session will be conducted electronically. {Operator Instructions) First we'll go to Satya Kumar at Credit Suisse.
Satya Kumar - Credit Suisse
Yeah, hi. Thanks for taking my question. Mary, a question on the Optima HD. You talked about a weaker memory CapEx environment which I thoroughly agree with but at least some of your marquee HD customers are actually not really [inaudible 4:20] CapEx and we hear are one of the stronger spenders even in this kind of environment, what is the dynamic [inaudible 4:26] no major repeat orders for the HP despite being qualified into production at these large memory customers and what will cause that to turn around?
Mary G. Puma
Well, Satya, I guess I'm a little bit confused by the fact that you believe that our largest customers have not been impacted by the downturn. There are definitely some major projects that have been impacted by the downturn and in the fourth quarter the delays in memory projects have pushed anticipated orders even further into 2008 than we originally anticipated. So in our mind, the slow down of the memory segment really has had a negative impact on capacity buys for the Optima HD. We don't anticipate this as lost business it's just simply that some of the orders and shipments that we had expected have been delayed and pushed into 2008.
Satya Kumar - Credit Suisse
Okay. Okay. If I look at your Optima HDs, how much did you recognize as revenues in Q4? How much do you plan to recognize in Q1? And are you also recognizing bookings for previously shipped HDs as you recognize the revenues?
Stephen G. Bassett
This is Steve. We have not recognized any Optima HD revenue to date. We do estimate that we'll recognize $12 million in the first quarter of 2008.
Satya Kumar - Credit Suisse
And that's where there've been bookings as well, right?
Stephen G. Bassett
Actually, the tools that we will recognize as revenue in 2008, most of those have been booked. We have a number of evaluation tools that as the evaluation periods end, throughout the next year, then they will show up in bookings and revenues at that time.
Satya Kumar - Credit Suisse
So how many is there in the installed base right now that you will recognize for 2008 and also how many do you have in your inventory that you can sell in 2008?
- To read the full transcript on Seeking Alpha, click here »
