Question-and-Answer Session
Operator
(Operator Instructions) We will take as many questions as time allows, however we do ask that you limit yourself to one question with one follow up. We’ll pause for a moment to allow everyone a chance to signal. We’ll take our first question from CJ Muse – Barclays Capital.
CJ Muse – Barclays Capital
First question, in terms of your December guide, I guess we are about six weeks into the quarter, can you comment on what you’ve seen so far in terms of turns business to try to help us frame where we should model the December quarter?
Martin S. Headley
At this stage, we’ve been seeing levels of business that are consistent with our customers’ announcements regarding declining levels of business going into the quarter. I think as Bob referred to the reason we find guidance so difficult at this juncture is the lack of clarity as to how much there may be further reductions in order bookings for delivery in the current quarter.
The extent to which our major customers may seek to have additional shutdowns during the course of the quarter as Bob made reference to in his previous remarks each week shutdown represents about 7% of the quarter from which we lose sales. That level of uncertainty makes it very difficult for us to project at this juncture exactly where the revenue levels may finally rest.
I think Bob gave you some indication about 15% plus being something that you could expect to see absent further actions by our customers which are and remain extremely uncertain.
Robert F. Lepofsky
Given the nature of the business, CJ, as you know product flowing out of our automation group and particularly the extended factory is directly related to activity in our OEM factories. So you can do the arithmetic real quick. It’s a given we’ll lose two weeks in this quarter. And the issue of is it three or three plus is really about how the Thanksgiving week and the week after play out.
So I would say to you, you need to be modeling well beyond the 15% and so we’ve kind of pegged that, take it at two to three weeks and that’s where you get the 15% to 20%. I would say 15% is baked in right now and we have not seen any good news in the last couple of weeks.
CJ Muse – Barclays Capital
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