The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Maybe first one for you, Frank, the outlook, it's basically flat quarter-to-quarter, and typically we see a roughly 5% increase in the first or the second
fiscal quarter of the first quarter of the year. So I'm curious, is it really just the mainstream in China that is the weakness? Is it just your ongoing lack
of real visibility and conservatism, or what's behind the flat guidance?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Okay, that makes sense. If I could just dig in a little deeper on the mainstream business, then. Obviously, over the last few years the demand levels
and the supply/demand equation in mainstream was very beneficial to you. You had nice margin expansion in that space.
So just curious, how do you look at the supply/demand equation today in mainstream? And what are you seeing from a pricing basis? Is the pricing
strength gone away? Are you seeing some weakness quarter over quarter? How would you characterize the mainstream business right now?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Okay, maybe just one last question on the mainstream. Are you seeing increased competition from local Chinese suppliers?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Great. Appreciate the extra color there, Frank. Maybe just a quick question for Chris then, congratulations on the new Gen 8.6 AMOLED screen.
What were the challenges to get to that larger screen size or panel size?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: And how big do you expect that to be inside of your flat panel business over the next few quarters?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Okay, appreciate it, Chris. And then Eric, looking at the balance sheet, obviously, a really strong cash position. There is going to be $200 million of
spending in CapEx this year, but it seems like there's still plenty of cash for a more aggressive buyback.
What is your mindset on buybacks versus, I know at one point a year or two ago you guys had talked about potentially keeping a war chest for
acquisitions, but what is your thought process on the balance sheet right now?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Right, and what is your current authorization for buybacks?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Okay. Great. Well, I was going to say, the final question overall is it looks like node migration getting more business of the 22, 28 nanometer node
is going to be a big driver over the next year. I'm just curious where -- anything you can say about your current capacity there and how much
capacity you'll be adding with this $200 million of capital spending this year?
Question: Thomas Diffely - D.A. Davidson & Co - Analyst
: Great. I appreciate the time for all three of you.
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