Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Vernon Essi of Needham & Company.
Vernon Essi - Needham & Company
Rhea, I was wondering if you could comment, we are hearing indications that of course the budgets are potentially slipping in some of your year-end customers. Can you share with us any anecdotal color you might have had over the last couple of weeks and what you’ve been hearing from your customers?
Rhea Posedel
As I mentioned, we saw that the opportunities for our core products, our MAX and MTX have been reduced during this past slow down in the industry. But I think the industry not adding capacity type systems, but we are seeing activity for new products in terms of the FOX and the ABTS and these are for new requirements, so I think we haven’t seen any change in the last few weeks or last few months that has gotten us concerned about the industry being in a worse state than it was prior to that, so I think we’re cautiously optimistic that in 2009 we will see increased orders for some of our core products along with FOX products.
Vernon Essi - Needham & Company
Also, I mean I appreciate your market share. You are in a situation where you will be gaining market share, so I’m sort of trying to take it to the 30,000-foot view here and I know that it’s very difficult with —.
Rhea Posedel
Well what I read is pretty much here, that I would say the DRAM business and the NAN flash business seems to be hit the hardest in terms of them adding FAB capacity and things of that sort.
Vernon Essi - Needham & Company
Right of course the challenge is always trying to figure out how hard. Then also, just to switch gears here, Gary I was wondering just on the balance sheet, I know you went through some of the items there, but could you walk us through the build up in receivables and sort of how that’s going to be taken care of over the next couple quarters?
Gary Larson
The receivables balance has actually been fluctuating quite a bit. Our current receivables level is just under $17 million, up from $11 million at the end of the fiscal year. But if you looked a quarter back it was actually a little higher than that, it was $17 million in change, so as we have noted in our queues we do have one customer that is doing a significant portion of our business and so what we’re seeing is the receivables levels do vary depending on the particular collection activities with that customer. So, we have been at a higher level than we are right now, we were successful in bringing that down at the end of the fiscal year and we would anticipate being able to bring it down a little further also now.
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