Question-and-Answer Session
Operator
(Operator Instructions). And your first quarter comes from the line of Gary Hsueh with Oppenheimer Inc.
Gary Hsueh - Oppenheimer Inc
Thanks for taking my question. Let me just try and back track here just to get my numbers right. Are you guys basically now combining standalone and integrated and that was 42% in June of a 17% in March? Is that correct?
Jim Moniz
Yes, that’s why we have been reporting it.
Gary Hsueh - Oppenheimer Inc
Okay. Great, and then as you go forward in September, a lot of the process to manufactures are starting to step it up in terms of shipment. I am just wondering, I know you don’t break down the mix between standalone and integrated.
But is there probable mixed shift more towards the integrated side in September and December with the process, to shipments really stepping up or there really now a change here in terms of that mix within integrated and standalone?
Tim Stultz
Yeah. The integrated -- first of all Gary, thanks for listening in and the questions. The integrated part of business has been pretty low over the last several quarters. Because it is driven almost all by capacity, energies and process equipment. And we will expect that as our process equipment shipments increase and based on the OEM relationships we have, we would see a pickup in that area. So there might be a relative shift.
Although the growth in the standalone side of the business is actually growing, its picking up at higher pace than it had in previous quarters. We are seeing some very good signs in particular in the LCD arena.
Gary Hsueh - Oppenheimer Inc
So, there is really no impact, there are really no push and takes really in terms of your product gross margin, as I look out here into the September quarter. Its really more about increased unit volume and fixed asset or cost absorption?
Tim Stultz
Yeah. The primary benefits on the product side will be on the absorption part of it. The product pricing and value propositions have been holding really well and so as we get some real improvement, in fact the absorption you should see improvement in the product margins.
Gary Hsueh - Oppenheimer Inc
Okay. And also if I can kind of just enquire about the mix of business between product and service. Again, some the process equipment guys are seeing a little bit more of a mixed shift from service and field upgrades to just outright system shipments going from June to September.
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