Q: Has Incap considered issuing numerical guidance for the full year or quarterly?
A: Incap has traditionally given verbal guidance for the full year early in the year. Once visibility for the full year financials increase, Incap has typically given numerical range (usually in the Q3 report). Incap’s guidance given is always on a full-year level.
Q: What is the visibility of the near-term order backlog and the resulting revenue? In other words, in practice, for how long ahead is production capacity typically sold?
A: During the component crisis, we have had exceptionally good visibility as customers have been forced to place orders or show forecasts in many cases even 24 months in advance. Customers normally give us forecasts 12 months in advance.
Q: What does the postponement of the largest customer’s orders mean for the third factory in India? Is the capacity increase not needed when the growth will not be as expected?
A: Our investment in the third factory is a long-term investment and we are already taking it into use. There will be a temporary need to ramp down part of the production in India as we are helping our largest customer to de-stock their warehouse levels. Due to this it will take more time than originally planned to fill the capacity of our third factory.