Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Reik Read with Robert W. Baird and Company.
Reik Read – Robert W. Baird and Company
Hi, good morning.
Dean Foate
Good morning.
Reik Read – Robert W. Baird and Company
Ginger, you kept the CapEx plans flat as you indicated, and yet you guys are seeing a reasonable number of deferrals. And I am assuming that a good portion of that CapEx is really new equipment. So, why not try to delay that new equipment a little bit and reduce that CapEx number in what is clearly an uncertain and weakening environment?
Ginger Jones
Thanks, Reik. I think the first part of the answer is that we have modest addition to our footprint that we are making and that were made in the first quarter, and that was $23.5 million of capital spending. So, about a third of that capital for the year is already spent and committed for those modest investments growth [ph]. What is ahead of us in the forecast, we are going to manage carefully. It is currently appears to be needed for programs that are transitioning in to the extent that those are delayed further or that we have less confidence in the forecast we will reduce some of that capital spending.
Reik Read – Robert W. Baird and Company
Okay. And then Dean, you kind of touched on this in your comments, but do you have a sense for the customer inventory issues that are out there? And are they still in a mode where they are – their customers are telling them that they want to reduce inventory or do you think things have gotten at least pretty lean so you’ve got better visibility.
Dean Foate
Well, it’s a great question and one that we’ve really been trying to drill into, in fact that’s part of the reason why I asked Todd Kelsey, who runs our customer management organization on a global basis to really try to understand. Whether or not we’re really going to see a trough quarter here in Q2, and so I am just going to let Todd comment on maybe a couple of the sectors and what we're seeing relative to inventory.
Todd Kelsey
Sure, thank you, Dean and thanks, Reik. With respect to our various market sectors, in our Wireline sector we have several key customers that have substantial inventory positions right now on the order of five or six major customers within that sector. So, the expectation is that they will utilize that inventory during the course of our fiscal second quarter and return to more normal demand patterns in fiscal Q3 and Q4, which is the indication that they are giving us right. We also have a few customers within our Industrial/Commercial sectors that have a similar salutation, particularly in the semiconductor capital equipment area. So, those are the two primary areas. The remainder of our customer base particularly if you look at our Medical sector and Defense/Security/Aerospace sector, we believe those customers are in good inventory situations as a whole.
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