Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Doug Freedman - American Technology Research.
Doug Freedman - American Technology Research
It’s clearly a very challenging environment. Can you offer us a little bit more color on, anything you can offer as far as geography, who is seeing this credit crunch first, what does sort of the sellout look like already? Any more color you can offer on what your customers are telling you as far as how this is changing their behaviors would be helpful.
Lothar Maier
Maybe I can add a little bit of color to that. From a geography standpoint, the issue really for us, I think, showed up first in North American. So North America was probably where we sensed this reduction in business first. But reasonably quickly, as we got into the current quarter, we’re seeing the orders slow down not just in North America but it’s spreading pretty much to all the locations that we sell into. And pretty much we see it in most of the end markets that we sell into, as well.
So I would say it was maybe first detected in North America but we are seeing it pretty much around the globe. And if there’s any one bright spot, it may be China out there still. But in general, it’s pretty much all of our end markets and all of our geographies.
Doug Freedman - American Technology Research
Can you offer, what is happening, is it any difference between OEM and distribution? Are you seeing distribution not want to carry inventory here? How much of this do you think is sort of an inventory pull down versus a demand pull down?
Lothar Maier
We think it’s more a demand pull down than an inventory correction. Although we see it equally distributed through OEM and through distribution, so we haven’t seen an inordinate emphasis coming from distribution. So we think it’s pretty balanced but if we had to lean one way or the other, it would probably be more OEM-related.
Doug Freedman - American Technology Research
And are you seeing a change in behavior, not just from the order rates, but sort of on the engagements with your engineers? Is there like a complete lack of urgency on new product introductions? Any color you can offer as far as your customers’ response in terms of the way in which they’re going to run their business.
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