Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Betsy Van Hees – Caris & Company
Betsy Van Hees – Caris & Company
Could you give us a little bit of color in terms of fiscal Q2 what type of reductions we’re going to see in bit growth, bit supply.
Ronald Foster
Given the market conditions and the slowdown we already have in place throughout the holidays we want to try and stay away from precise bit guidance this quarter. We’re going to be pretty reactive on a go forward basis and see what plays out in the marketplace and I think throwing any guidance out there right now might be as likely to be misleading as helpful.
Betsy Van Hees – Caris & Company
When we’re looking at pricing can you give us from when your quarter started if DRAM ASPs were not to decline any further what type of price reductions we would see.
Mark Adams
It looks like we’re going to see, if nothing changed from here to the end of the quarter we’d be about down mid-teens on the DRAM side of the business and closer to down to high 20% mid 30% in NAND. That doesn’t factor in the last week of activity in pricing which has been quite favorable both in DRAM and NAND. We’re hesitant to make too much of a conclusion on the uptick in DRAM pricing and NAND over the last five business days or so but certainly positive about it and want to stay on top of it going into the post Christmas season.
Operator
Your next question comes from the line of Glen Yeung – Citigroup
Glen Yeung – Citigroup
I was wondering if you could talk about your expectations for bit supply growth on DRAM and NAND in fiscal 2009 and how it will compare to the industry.
Ronald Foster
Its similar to what Mark’s comments were about our production and our view on how we’ll react. You can imagine that the estimates for bit growth in calendar 2009 from the industry are wide as well. What we’ve seen out there so far expectations in DRAM in bit growth is as low as 20% maybe as high as 40%.
And NAND we’ve seen anywhere from about 70% bit growth up to about maybe potentially 100%.
Glen Yeung – Citigroup
Can you talk about inventories that you’re seeing in the channel currently and you talked a bit about being hesitant to make any comments on the recent movement in DRAM spot pricing but I guess if you can discuss what you see for any potential for increases in first half January.
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