Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tore Svanberg - Thomas Weisel Partners
Tore Svanberg - Thomas Weisel Partners
Could you just talk a little bit more about the dynamic around your largest customer, especially regards to bookings, when do you expect those to bottom out and potentially start increasing again?
Richard Williams
So our understanding is kind of a complicated situation, because it certain in models that are not moving and it’s not clear what promotional programs have been put in place on those models. So we are still waiting to see weather or not their strategy will be to launch initiatives to promote, those models get a moving or weather not they will shift that demand to different cell phones, for example, camera phones instead of smartphones.
So we expect that increased visibility will occur in the next two weeks and then the orders will follow in accordance with whatever their change or adjustment in their strategy. So that’s why we’re keeping the range pretty open right now, because we don’t have a lot visibility in it, but at the same time we know historically that our customers tend to be pretty aggressive and generally launch pretty aggressive recovery programs whenever there are seen slowdown, so it remain to be seem still.
Tore Svanberg - Thomas Weisel Partners
As far as you can tell, are we talking about an inventory adjustment here of ATI components or is this one inventory adjustment of actual and system phones?
Brian McDonald
It’s end system phones and so for example the smartphone were to be later and replaced by a phone that was high end camera phone are content might to the same. If the smartphone will replaced with a mid year phone without no camera flash, we would see a dropped in our content and it was to be replaced by a mid year sales the camera phone, then we might see a drop in the ASP content, but not nearly a substantial as it went to a low end phone.
So what’s kind of an adjustment of their mix that determines what our net financial impact is going to be, we see that right now our understanding is the high end demand as the portion that is slowdown and that should affect other vendors, the more exclusive part is to those high end phones, the more that particular vendor would be affected.
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