Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. [Operator Instructions].
And your first question comes from Timothy Arcuri with Citigroup. Please go ahead.
Brian Chin - Citigroup
Hi, guys. This is actually Brian calling in for Tim. Just had a few things. Number one, Jim, I think you said that you saw about a $35 million to $40 million shortfall in revenues due to timing of some flip chip business, that’s from customers namely PC and graphics guys in Q2 and that you expected some of that to come back in Q3. So, how much of that did you actually see come back and kind of what’s left to come back?
James J. Kim - Chairman and Chief Executive Officer
I think you are referring to module business, Micro EMS. I don’t think? I don’t recall saying that in flip chip area.
Brian Chin - Citigroup
Yes, I think you are right. Yes.
James J. Kim - Chairman and Chief Executive Officer
Micro EMS is the is the one that where a group customer where we design into it, but they haven’t selected that as a? already didn’t do very well. So, we are now able to get that module business. That is the actually? that is what our revenue would have been reasonably strong growth, though we haven’t seen it this year, that’s true. So, I mean that situation? we are not remedied on to probably late 2008 or early in 2009.
Brian Chin - Citigroup
Okay
James J. Kim - Chairman and Chief Executive Officer
We are working on those designs at the moment however. But we want? the new model design will not start on to probably at the fourth? late fourth quarter or early 2009.
Brian Chin - Citigroup
Okay. So, maybe I’m misunderstood. But I thought you have said last call that you are expecting some of that? some of the inventory related stuff that kind of go back into Q3?
James J. Kim - Chairman and Chief Executive Officer
I don’t believe so. I may have said Q4. But if I have said it, it could be wrong. It has to be 2008. It will come back late 2008, Q4 or 2009.
Brian Chin - Citigroup
Okay. That is helpful. And then, I guess, as a follow-up, some of your peers have been talking about higher CapEx next year and raising overall capital intensity. And right now, you guys are close to about 10% CapEx to sale. Can you give us a sense for you are thinking about CapEx in ’08? And if we can expect your capital intensity to move back towards a more normalize low to mid teen level similar to what your peers have suggested?
- To read the full transcript on Seeking Alpha, click here »
