Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). And our first question will come from C.J. Muse with Barclays Capital. I do apologize that there will be one moment before we do open the line for C.J. Muse. Just a moment please. And C.J. Muse, your line is open now please.
Christopher J. Muse – Barclays Capital
Hello, can you hear me?
Robert J. Lepofsky
Yes, we do C. J.
Christopher J. Muse – Barclays Capital
Great. Thank you for taking my question. I guess first off in terms of guidance, are you providing guidance, and if not what kind of revenue run rate internally are you planning for the first quarter?
Martin S. Headley
We're not providing guidance I'd just say that I think as both my comments and Bob's prepared comments would say, you can look at what our large OEM customers have been projecting anything in the kind of the 30% to 50% down kind of range, and we ought to be mimicking that kind of decline is the best intelligence that we could provide to people at this juncture.
Christopher J. Muse – Barclays Capital
Okay. So, I guess what you say is that in terms of excess inventory, they're impacting service and some of the other lines that's mostly behind us and so you should track your customers going forward?
Martin S. Headley
If anything it would tend to suggest that we may go towards the lower-end of customers revenue projections.
Robert J. Lepofsky
Two sides of that C.J.
Christopher J. Muse – Barclays Capital
Okay.
Robert J. Lepofsky
That actually puts you into that somewhat broad range of 30% to as much as 50% down and you are absolutely correct that in terms of the service support side, we think that the issues of inventory burn are behind us, but within the new system side there are still work-in process inventory to be burned in our OEM customers facilities. And so the rate of their burn will determine what our ultimate result is. That's the reason for the uncertainty and such a broad range from 30% down to as much as 50% down in the worst case.
Christopher J. Muse – Barclays Capital
Okay, very helpful. And if I could ask one quick follow up, on the cost cutting side, when you're thinking about that getting closer to the 80 million cash break-even level. What does that look like on a GAAP basis in terms of gross margin and OpEx whether that's exiting June or further September quarter?
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