Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Rick Shafer – Oppenheimer.
Rick Shafer – Oppenheimer
We've seen a couple of your competitors pre-announce this week. I'm sure you factored this into your guidance, but can you give us any color as to what you're seeing out there and part of that is I'm just curious what you're seeing in terms of any difficulty with collections or stretching out of your accounts receivable.
James Peters
We've seen what's come out of National, Semitech and Intel and the industry in general. Let me just talk about the concern that they had. One was they had quite honestly was the survivability of their suppliers. We have that same concern. What we're doing here at Microsemi is looking at suppliers and make sure we have strong second sources and the like, and I think that's one of the major concerns in the industry is checking that out.
The second one is customer survivability in a couple of ways. One, let's be sure our customers can pay. I think what's going on right now in distribution, specifically in the Pacific Rim, the cost through is the same as others are seeing out there in the market space which is, I think they're trying to sell their products and not replenishing them, and using that money because they can't raise money any other way.
We see the same thing predominantly in those two sections, in analog mixed signal, offset nicely by the rock solid customer base of high reliability. I think the other thing that we've heard out there is at least from income, is their concern even if they can raise money in this environment with their CapEx expense.
Microsemi, our total CapEx last year was about $25 million and I'm going forward since Ireland ramp up is largely over, now it's a matter of getting utilization out of that site. I think my CapEx next year will be down to less than $20 million. So I think once again, we're offsetting this a bit because of the strength of the higher liability.
Rick Shafer – Oppenheimer
Would you attribute your relative strength versus peers who are all guiding a lot more negative for the fourth quarter, would you attribute more of that to your recent M&A or is it more organic or can you talk about the relative strength in that?
James Peterson
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