Question-and-Answer Session
Operator
Thank you ma'am. (Operator instructions). Our first question comes from the line of Satya Kumar with Credit Suisse. Go ahead.
Satya Kumar – Credit Suisse
Yeah, hi. Thank you for taking my question. I wanted to clarify the cash flow comments you had. You mentioned that there would be free cash flow negative. Excluding the Tessera payment, what will free cash flow be, and can you remind me again what was CapEx in Q1?
Joanne Solomon
Sure. You know, we don't guide specifically with respect to free cash flow. You are absolutely correct in saying that the largest unexpected, alright not unexpected, but large out-of-period payment is with respect to Tessera's $64 million. We also have a timing of CapEx payment with respect to employee benefit and risk charges, you know, coming up to that go against it, and then, you know, depending on where we are with the guidance that would obviously impact it as well.
Satya Kumar – Credit Suisse
But directionally can you at least let us know if Tessera weren't there, would you have been free cash flow positive?
Joanne Solomon
Because we have such a large range with respect for our guidance I don't feel comfortable at this time.
Satya Kumar – Credit Suisse
Okay. And then a question on business trends. Some of your peers are talking about a sign of business improving on a monthly basis from the month of January, for them to hit the Q1 numbers, what trends are you seeing on the book-to-bill on a monthly basis? What end market sectors are you seeing center weakness. Are you seeing any particular sectors where you are seeing additional orders or fewer orders.
Kenneth Joyce
Satya, the downturn is, as we said in our release, is really very broad-based, it's across all sectors, across all product lines, pretty much across all of our sectors. It's very macro-economic demand driven.
Satya Kumar – Credit Suisse
Right. But, in terms of linearity of the quarter, as the month of February as bad as it was back in January, what trends are you seeing year-to-date?
Joanne Solomon
That is certainly something that we poured over over the last several weeks to see if there is any linearity trends. Again our guidance is so wide with respect to revenues, it is hard to conclude whether we go up from January, flat from January or down from January, there is just, you know, while we get six-month customer forecast, it's hard to give any weight to actually predict from there.
- To read the full transcript on Seeking Alpha, click here »
