Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Edwin Mok – Needham and Company.
Edwin Mok – Needham and Company
The first question regarding the cost reduction, there was a press release or there was some news about you guys laying off around 100 people starting from yesterday. Is that the only thing you guys do on a cost reduction or is other stuff you are doing to reduce your costs?
Larry Murphy
No, there's other things we're doing, Edwin. There's been pay cuts for a number of people. There's mandatory time off. There's reduction of overtime and we will be reducing non-essential travel as far as unless it's customer related and there'll be other things we're looking at, too.
Edwin Mok – Needham and Company
On your press release you mentioned there was a booking cancellation at one of your gas customer, I guess they canceled a project there. I was wondering given how tough it is in the memory sector right now and you guys have some exposure in that sector, any risks for your current backlog in terms of cancellation? Can you guys quantify that or maybe put some color on that?
Larry Murphy
Well, there's always risk obviously, Edwin. Right now on the memory side of that we're looking for orders to be quite honest with you and we're expecting to get some. So, we don't expect any cancellation on the memory side of that business right now, but we have to wait and see how that plays our.
Edwin Mok – Needham and Company
In terms of your next year guidance, I'm just curious actually you guys probably like any semi cap company has a part of your business that is in service and spare, right? Bake into that $170 to $220 million, I was wondering how do you guys model your spare and service into next year and based on my model I think you guys have around $30 million plus of spare and service. Is that a reasonable number to look at going forward?
Larry Murphy
No, that's low, Edwin. It'd be a little bit above $40 million.
Edwin Mok – Needham and Company
And you expect that to be flattish, grow or decline in the coming year?
Larry Murphy
I think it'll be fairly flattish.
Edwin Mok – Needham and Company
In terms of wafer level packaging that has been quite a strong market this year. I was wondering if you guys have any kind of visibility or any kind of color in that end market. How do you guys view that and do you expect growth or decline in coming year and what would be the driver for either way?
- To read the full transcript on Seeking Alpha, click here »
