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LTX F1Q08 (Qtr End 10/31/07) Earnings Call Transcript

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2007-11-20 18:22:34.0

Tags: LTX Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Mehdi Hosseini with FBR. Please proceed.

Mehdi Hosseini - FBR

Yes, thank you. I want to better understand your prepared commentary regarding new wins, next generation RF. Does this have anything to do with the that these European IDM is trying to market?

David Tacelli

Mehdi, not to go into any products, specifically. But this win could lead to us being able to test for this specific customer, their single-chip, whether it's an SOC, or an SiP in single package.

Mehdi Hosseini - FBR

And was that realized because obviously you must have replaced an incumbent, correct?

David Tacelli

That is correct.

Mehdi Hosseini - FBR

Okay. And can you help me understand what lead to that other than pricing, just help me understand from a big picture point of view?

David Tacelli

Again, as I stated in the prepared remarks, it's a combination of things. When you looked at the technology that we offered, our ability to provide a lower cost architectural solution for that company, our ability to test not only their RF products, but down the road, either their power or baseband products in one single package.

And if you wrap all that together, our ability to do it cost effectively. So, I think this customer looked at all three of those elements and decided that they would choose us today for RF solutions and, potentially, down the road, for other solutions. It's not a guarantee that they will choose us for that, but I am sure that had something to do with their decisions.

Mehdi Hosseini - FBR

If you want to extend this platform to baseband, would you need to adjust some instruments or would that require more significant upgrade to the platform?

David Tacelli

Instruments, only.

Mehdi Hosseini - FBR

Okay. And just one follow-up. When you said bookings were expected to remain at the top level, you were referring to $30 million in the January quarter, correct?

David Tacelli

That's correct. And that's our guidance -- our guidance of $28 million to $32 million is basically the same guidance we gave for the October quarter.

Mehdi Hosseini - FBR

Okay, thank you.

David Tacelli

Okay.

Operator

Your next question comes from the line of Dave Duley, representing Merriman Curhan Ford. Please proceed.

Dave Duley - Merriman Curhan Ford & Co.

Yes, good afternoon.

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