Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from C.J. Muse - Barclays Capital.
C.J. Muse - Barclays Capital
I guess first question, you guided revenues 25% plus. I guess it was hoping you could frame what the magnitude of that upside could look like and if it came in higher, what would drive that?
Martin Headley
I think, we would say that the upside to that would probably be into the range that you’ve heard. Most of our OEM customers talk about at the very high end. Probably a little moderated from that level, because of the fact that we still see much more slowness and lack of traction in some of the later cycle areas, such as the industrial market.
Frankly, what we’ll guide it to an increased pace will be the degree to which end users increase the pace of service and spares. Requirements over the course of the quarter, not something to which one has far less of an advanced visibility to and that you’re really reacting to day-by-day and week-by-week developing situations.
Bob Lepofsky
C.J., I think our position is, as you can tell from my comments, we’re sitting here now extremely well positioned. Well positioned to respond and I think that is the key. We are now in a respond mode and respond quickly. We saw the quick upturn in June and we satisfied all the customer demands. We think that the two areas that most likely have the highest upside potential.
As Martin noted, are the extended factory business, that’s directly related to the short lead time requirements for new tools and the product support area, the global customer operations area. Those two, relate to the highest upside. Interestingly enough, those two have somewhat different profit profiles in terms of their dropdown. The lower obviously, being in the extended factory, the higher being in the global customer operations. So net-net, we think that any mix of upside will translate positively for us for the quarter.
C.J. Muse - Barclays Capital
If I could follow-up with a second question, I was hoping to discuss cash burn. I guess, I thought your target was $10 million or less cash burn in June. It came in I guess roughly $16 million. So I was hoping you could discuss, what surprised you there? Then I guess perspectively for September, what your target is? Then as part of the dialog, can you comment about your current cash position and in terms of where it’s domiciled or located and whether there would be any difficulties bringing it back into the U.S.?
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