Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Eastman – Robert W. Baird & Co., Inc.
Richard Eastman – Robert W. Baird & Co., Inc.
Just a couple of things, one is in the factory automation business could you just provide maybe a little bit of color on how the distributor channel did relative to the direct channel against that 32% decline or better yet slight increase quarter-to-quarter?
Robert J. Shillman
Dick can give you the more accurate answer but I can tell you that for the factory automation projects for our In-Sight products about 60% to 70% go through direct and the remaining go through distribution but when it comes to Checker which is the vision sensor it’s pretty much the other way around, the majority of the projects go through distribution.
Richard Eastman – Robert W. Baird & Co., Inc.
Could you just talk for a second about the vision system on a chip, maybe some of the potential early adopters, give me us an idea of maybe like an end market application where it has big advantages?
Robert J. Shillman
For competitive reasons Rick we’ve decided that we’re not going to talk about the first applications which are pretty much in the work. We’re going to have a product, as I mentioned, the second half of next year. It’s going to be in one of our products for a very particular application where it’s going to increase the depth of field and make the product much faster than the existing one. It’s going to be able to do things that the existing products can’t do and also the OEM applications that we’re talking about, the high volume ones, we’d prefer not to say what the tool is that they’re going to be using. But again, it’s something that cannot be done with vision today and is being done in high volume with other technologies.
Richard A. Morin
On your other question Rick relative to the factory automation business, we saw a slight increase of about a couple of percentage points. If you look it was a little bit higher towards direct than it was to distributor. I think a couple of reasons for that were as mentioned in the script we had a couple of large project orders that were booked in the quarter and those came direct not through distribution.
Richard Eastman – Robert W. Baird & Co., Inc.
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