Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Krish Sankar from Bank of America; your line is now open.
Paul Thomas - Bank of America
Good morning, this is Paul Thomas for Krish Sankar. Thanks for taking my questions. First half congratulations on strong results.
Larry Firestone
Thank you.
Paul Thomas - Bank of America
Yes, first on the cost cuts, so you’re saying that the $1.1 million in the temporary reductions are going to come back in Q1. Are there any other temporary reductions on the horizon that will come back after that you can kind of see now, or is that the most we’ll see sort of near term?
Larry Firestone
I think that’s the bulk of what we’ll see near term. We have things like 401(k) contributions and ESPP plan, things like that are still on hold, but those are longer term decisions for us.
Paul Thomas - Bank of America
Okay and then, on the inventory levels of the semi OEM customers, do you think at this point that your shipments are tracking pretty much in line with their shipments or do you think you guys are still at a steeper slope?
Larry Firestone
It feels like we’re very immediate term with our semi OEMs. I think, their inventory levels were taken down to pretty low levels and given the lead time requirements that we’re seeing from the semi market, that’s a pretty good indicator that we’re pretty immediate to going from our shipping dock straight into a tool.
Paul Thomas - Bank of America
Okay. Thank you.
Operator
Your next question comes from Jim Covello from Goldman Sachs; your line is open.
Kate Kotlarsky - Goldman Sachs
Good morning. This is Kate Kotlarsky for Jim Cavallo. I was hoping to ask a follow-up question on the share loss you talked about on the flat panel side of Applied Materials. Maybe if you could give us a little bit more color as to why you think that might have happened, whether that’s more pricing related or whether that’s a technology issue, that would be really helpful.
Hans Betz
I think in this specific case more on the technology issue because we have been working on a new power supply for this application, but because of the strong demand, which came up very quickly, we have not been ready with this new product, but as you know, our relationship with applied materials is pretty strong and as soon as we have finalized this new product, I think we will capture back this kind of share loss.
- To read the full transcript on Seeking Alpha, click here »
