Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of James Mitchell with Goldman Sachs. Please proceed.
James Mitchell - Goldman Sachs
Could I ask a couple of questions? One is about the CapEx of $30 million in the quarter -- I think originally you had guided for around $50 million to $60 for the full year, so I was wondering what you would now guide to. And it looked like some of the CapEx was the Beijing [inaudible] network, so I was wondering when that would contributed to revenue.
And then the second question was on the poster frame business. It looked like your revenue was growing roughly in line with your capacity from first quarter to second quarter. I thought it might grow a little fast, just given the seasonality but I wonder if you could shed some light on that business. Thank you.
Daniel M. Wu
I’ll answer the first question and the second question a little bit, and then I’ll have Dr. Tan give you an update on the poster frame business.
First of all, second quarter CapEx was a little bit high as we said previously on the previous calls, that we expect our CapEx budget to be front-loaded towards the first half of the year. In the second quarter, we incurred roughly about more than $7 million -- between $7 million to $8 million in CapEx relating to our LED business. This is including the Beijing LED network payments, investments, as well as investment of the LED in Shanghai.
So these CapEx, it’s relating to the LED business in our network. We don’t expect for the remainder of the year it will continue to be significant.
And also, as we continue to expand our digital frame network, both in our residential network and the commercial network, the cash outflow is a little bit ahead of the installation because we have to pay first, then we receive shipment, then we will install. Then later on, it will become available for sale inventory.
So actually, the installed base is higher than the published number. The number we published, 25,000 digital frames, these are available for sale inventory. So given that, we expect, although in the first half of 2006 we have spent roughly about $45 million in CapEx, we still are sticking to our previous expectation of $50 million to $60 million in CapEx for the full year. Of course, if the business conditions continue to improve, we may actually increase this budget but at this time, based on our internal estimate, management estimate, we still expect for the later half of the year, the CapEx number will come down and the full year we expect no more than $60 million in CapEx, in cash outflow.
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