Varian Semiconductor Equipment Associates, Inc. F4Q08 (Qtr End 10/03/08) Earnings Call Transcript

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2008-10-30 19:02:10.0

Tags: Call Transcript, Customer, Earnings, Needham, Varian Semiconductor Equipment Associates Inc., Taxes, Free Trade, Financial Planning, Finance, Seeking Alpha, Call Transcript, Customer, Earnings, Needham, Varian Semiconductor Equipment Associates Inc., Taxes, Free Trade, Financial Planning, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Stephen Chin with Capital. Please proceed.

C.J. Muse - Barclays Capital

In terms of your PLAD opportunity, can you comment on one, have you made any traction in the non-view side of things and then two, what your outlook is for revenues for that line item in calendar 08 and 09?

Gary Dickerson

We’re working with customers in different applications. In logic, this is farther out, but conformal doping is one and the feedback that we’ve had so far from customers is we’ve produced by far the best results in conformal doping, but again, that’s probably out a couple of technology nodes. Another one is CMS image sensors. That’s another one that we’re working on with customers, but probably not 09 opportunity in any significant revenue, but we are working with customers. All the different logic customers on different applications, but nothing near term.

Robert Halliday

In terms what’s it look like, in fiscal 08, you can figure it out pretty well. I think we said we’re going to do about 80. We did just under 80. Still, as Gary said, predominantly a D-ram application. So that’s slowing it a little bit. So 09, we don’t really have a great outlook yet. If it’s only view-ram, we think there will be a little bit of wind in PLAD’s space frankly, because they’re just turning back all spending.

Gary Dickerson

We do have customers that haven’t ramped into production, but as Bob said, the capacity buys are not that significant. So it really depends on when that market comes back before we see significant business from those new customers.

Operator

Gary Dickerson

Operator

And our next question will come from the line of Edwin Mok with Needham.

Edwin Mok – Needham

What do you expect the tax rate to be next year?

Robert Halliday

It really depends on volume. So let me give you a scenario without forecasting the future. We could pay small taxes each quarter, even if we’re sort of break even. Now if we start to make more money, the tax rate goes down. If we made a lot of money, it would approach the numbers we used to say, which are 28% or something like that, but we’re not going to make a lot of money. So I think you’re looking at a low profitability.

Edwin Mok – Needham

 

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