The current increase in ATE sales is primarily being driven by increasing capacity requirements for memory and SOC testers.

The current increase in ATE sales is primarily being driven by increasing capacity requirements for memory and SOC testers. Expanding demand for these semiconductor devices, coupled with the trend toward further outsourcing of test to SATS companies, is sparking the latest ATE market growth cycle.

The majority of semiconductor manufacturers have and will continue to maintain their investment discipline and invest carefully, although some vendors will be investing strategically in 2006.

Back end capacity is relatively tight, mainly due to raw material issues and the pending Restriction of Hazardous Substances and Waste Electrical and Electronic Equipment environmental regulations.

We expect sequential quarterly revenue growth to have returned in the first quarter of 2006, after hitting a low point in the fourth quarter of 2005.

The equipment market decline in 2005 was the result of a number of factors, which worked together to slow the demand for new capacity.