Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Edwin Mok – Needham & Company.
Edwin Mok – Needham & Company
Let me start with just a quick housekeeping, Jack. You talked about tax rate for 35%. I imagine with this guidance you expect losses for the next two quarters. Are you talking about a 35% tax benefit in the upcoming year?
Jack Sexton
Yes. A 35% tax benefit.
Edwin Mok – Needham & Company
And that excludes the cash you're going to collect back from the tax refund I imagine, right?
Jack Sexton
Yes. That's purely a GAAP tax number. Effective tax rate, you're right, there will be losses in the upcoming quarter, as we've guided to, and we're expecting a tax benefit on those losses.
Edwin Mok – Needham & Company
One question I have in terms of your property plan and equipment, I guess, it dropped quite a bit. Is this because of the site restructuring. Is that why it dropped from like $20 million and the end of December quarter to just $9 million in the past quarter?
Jack Sexton
Edwin, that's a good question. The impairment that we're speaking about is not just not impairment of intangible assets, but in fact we're impairing long lived assets, which include both the goodwill of about $34 million, some level of intangible asset reduction and also a level of fixed asset reductions in asset grouping. So what you see there is the impact of the impairment.
Edwin Mok – Needham & Company
Then, Clarence, maybe on the business side a little bit, if we focus on non-semi, you mentioned that intuitive actually declined $1 million in last quarter? I'm curious, have you started shipping the flusher cart assembly in the last quarter? And I thought there's a 20% increase in dollar per system that you will be shipping intuitive. Can I ask why you declined $1 million? It looks like a pretty big number to me.
Clarence Granger
Sure, it's pretty simple. You're right we didn't ship the flusher carts in the fourth quarter, so we expect to start flusher cart shipments. They had a design issue that wasn't fully rectified in the fourth quarter, so the plan for initial shipments was delayed until the first quarter.
We are now starting to ship those in volume and we expect reasonable shipments in volume in the first quarter, although they have seen a little bit of a slowdown, nothing compared to what we've seen in the rest of the industry.
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