Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Bill Ong with American Technology.
Bill Ong - American Technology
If I -- good afternoon. When you look at your LED customer list, what percentage of your customers or revenue, whatever is easier, is primarily capacity buys? I would surmise that the balance would be more share gains and technology buys and within that, how much is capacity buys and tech buys? What I'm trying to get at is that would give you a baseline type of spending needed to sustain LED manufacturing globally.
John Peeler
Thanks, Bill. I don't think we have the information to give you that split at this point, but I would tell you that our customers continue to buy products that offer improvements in productivity and uniformity and LED brightness so we have seen an ongoing desire to move to new systems and the over capacity situation seems primarily focused on Taiwan and China at this point.
Bill Ong - American Technology
Okay well given that your bookings dropped in half, do you have a sense of -- qualitatively how much more will it drop modestly or more substantial drop and that will also give me a sense of the baseline type of spending in LEDs.
John Peeler
Bill, it's hard to tell at this point. The last time the market fell off was 2005. I think that the downturn lasted six to nine months. LEDs were in a lot less applications at that point. There is continuing growth of new applications as we go forward so if you look at DELL, for instance -- all of their new laptops are moving to LED back lights and it clearly takes time to get the new laptops into production but the change is happening and it's difficult to tell whether this is a flat spot or a downturn and we are all interested to let some time go by. There is a lot of prospects out there.
We are looking on a lot of deals, but it's a very volatile market so it's hard to tell how quickly it's going to dry up -- or if it is going to dry up or just go flat so very uncertain at this time and we’re monitoring it carefully.
Bill Ong - American Technology
Okay yeah I realize it's a difficult question. My second follow-up question is since you do have a distinctive set of customers -- the LED makers dealing with all the orders, the disc drive makers dealing with weak, demand, and then you have your research guys dealing with the long-term budget plans. Maybe you can give me some insight of how they are they looking at a recovery in the business and can you also rank which of the three segments will recover first?
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