Question-and-Answer Session
Operator
Operator instructions. Your first question is coming from Laura Conigliaro - Goldman Sachs.
Q - Laura Conigliaro - Goldman Sachs
Maybe you can start off by giving us some of your views on the stock. Because you're now at 100 million shares flat and doesn't that really limit your options for buybacks? You said last quarter that you had looked at the liquidity. You felt very comfortable with the liquidity. Can you tell us what your latest observations are on that?
A – John Gamble
It's John Gamble. We continue to look at the liquidity. We look at it ourselves, we also speak with advisors. And to date, we don't see an impact in liquidity and don't believe we're in a situation where a lower share count is currently an issue. Obviously, if it started to become one, we would have to do something about that. But at this point in time we don't think there's an issue.
Q - Laura Conigliaro - Goldman Sachs
Does that mean that you would still continue your buybacks?
A – John Gamble
Well, we don't forecast whether we're going to continue to buy back or not. But in terms of whether or not at the current levels liquidity would impede us being able to do that, I think the answer is no.
Operator
Your next question comes from Toni Sacconaghi – Sanford Bernstein.
Q - Toni Sacconaghi – Sanford Bernstein
Yes, thank you. I just wanted you to confirm your comments about supplies inventory in the quarter. Are you effectively saying that there was a build on a sequential basis, or on a YoverY basis? I think sequential is more relevant. A sequential build in supplies inventory, and if so, how much? And could you, could you comment on whether there was also a build in hardware inventory in the quarter? And why you feel confident in your assessments of each of those?
A – Paul Curlander
As you know, when it comes to channel inventory, it's hard to be confident because we don't have that data. We can't see channel inventory directly. We can only see it indirectly. We get partial reporting. So at best, what we have is estimates. And historically, that's been a little bit difficult for us to call. What we think, and what we meant to imply about what we said on channel inventory, is that on a year to year basis, obviously we saw a significant effect from the shrinkage that occurred in Q3 2005. In Q3 2006, sequentially, again, we can't see this directly, just an estimate. We believe there was a slight build in the supplies inventory, very slight, not much, and not unusual as what you see sequentially, typically. But maybe just a slight build. So, the real issue was on the year to year basis. Relative to hardware inventory in the quarter, I think in the U.S. we saw some build in laser inventory, primarily around some big deals that were getting staged into the channel from a timing perspective. That's about all I can think of as I think around the world.
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