Our gross margin improvement efforts are beginning to show real results. And with less Aspen III in our product mix next quarter, we expect to see solid improvements in our margins and expect further progress as we move through the second half 2011.
We also significantly expanded our product positions. During the second quarter, we continue to book and ship etch tools, further extending into new applications. The paradigmE etch system is now in volume production for DRAM and has established itself at advanced NAND production.
The Alpine is running volume production etchbacks at a leading foundry and is established in the growing packaging market.
Beyond etch, our market share growth in strip continues as a result of our low-cost, high-productivity strategy. In the second quarter, we shipped strip tools to 4 of the top 5 CapEx spenders, as identified by Gartner, showing our continued strength as a strip leader.In RTP, we have been selling our Helios product to a NAND flash expansion, which is a new position gained over the last cycle. We recently shipped our Millios millisecond anneal system to a major customer for 20-nanometer and below processes. This shipment is a new customer for the Millios product and demonstrates a growing recognition of our technical strength for 20-nanometer and beyond millisecond annealing. As we described at our Analyst and Investor Day on May 18, we are a much different company than we were during the last cycle, which ended in 2007. At that time, we had 2 products competing in capacity-driven markets, with a served available market of about $800 million. We invested heavily during the downturn and strength in the product portfolio in these 2 core markets. But more importantly, we successfully launched our paradigmE and Alpine etch products to compete in the much larger etch market. With these new etch products, we bring differentiated technology for our customers as they attack the many challenges of Moore's Law in ever smaller geometries. And we deliver this with superior cost of ownership advantages to help our customers fully deliver on Moore's Law. Read the rest of this transcript for free on seekingalpha.com
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