Couple of immediate questions:
1) I can't understand the way they treat the ANDO deal :
- Sales were $54,130,000 including $7,400,000 of revenue from the Ando transaction discussed below ...
and few lines later:
- In exchange for the right to market, sell and manufacture Fusion in Japan, Ando paid LTX $10 million and returned to LTX 1,600,000 shares of LTX Common Stock which it had previously purchased.
2)Where are their 6 FUSION customers located - hope they are not in Japan?
3) Any ideas about the revenue breakdown by region? If I recall correctly, they used to rely heavily on sales in Japan. If this is the case, ANDO deal may actually hurt the revenues outlook going forward.
My immediate impressions FWIW:
All ATE companies had problems last Q. Unfortunately, for a company like LTXX a small drop in revenues results in a disproportionately big drop in EPS.
In itself, a quarter like this is not a disaster - provided the semis will recover soon enough. For now though, semi-equip BTB continues to fall, and it is likely that LTXX Q4 is going to be even tougher than Q3. To this extent, I am not so sure we'd hit the bottom. I doubt funds will get interested in LTXX until the industry BTB (preferably for back-end) shows some signs of improvement.
Regards,
Y.
|
