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Technology Stocks : Semi Equipment Analysis
SOXX 299.81+2.7%Dec 19 4:00 PM EST

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From: etchmeister7/24/2006 1:02:03 PM
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Having given this guidance, I want to announce that in the future, we will stop giving bookings guidance effective with our January 2007 conference call. We are going to stop giving bookings guidance, as a function of the fact that our focus is on shipments, revenue and operating profit and that is consistent with having run the business. Our assessment of business momentum is to find by market share and new application penetrations. As a company, we are focused on short-term execution operationally and financially and a long term positioning of our new product in the new markets and how they affect the future of our business. Lead times are now so sure that our customers are leveraging that capability evidenced by the short term nature of our backlog, that in order some backlog guidance becomes less valuable as a statement of cycled momentum. And many of our investors have indicated that they see little benefit to bookings guidance and prefers to talk about the execution performance of the company and our longer-term prospects in the business.

Mark Fitzgerald - Banc of America Securities

So given that, the back logically short term you have short lead time, how can you guys argue that booking isn’t an important number to give the street a leading indicator at this point?

Martin Anstice

Because the reality is in that backlog as I’m just trying to say, there is some part of it that is in December, not much beyond but it’s a short-term deal. And so the best way we can characterize momentum, the best way we can characterize the economic things relative to things that we manage, all day everyday are to focus on fabrication wings, to focus on similar events and to focus on revenue and cash cycles and that’s really the decision that we’ve made.

seekingalpha.com
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