Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Cox – Piper Jaffray.
Michael Cox – Piper Jaffray
Would it be possible to break out international sales versus domestic sales?
Xinyue Jasmine Geffner
Unfortunately Michael, we do not give this type of information at this time.
Michael Cox – Piper Jaffray
Could you comment on the current project pipeline as you see it today in terms of your bidding and quoting, the breadth of projects both domestically as well as internationally?
Xinyue Jasmine Geffner
We see strong trends both in international markets and also in our China markets as you can see from our recent big wins. We did disclose in April during [inaudible] show conducted in the United States that as of April, we have $200 million in backlog right now.
Michael Cox – Piper Jaffray
From a seasonality standpoint it looks like the first quarter has historically been your lowest quarter in terms of sales. Do you expect that to be the case again in 2008?
Xinyue Jasmine Geffner
As we also point out a couple times in various events, that our business is a lumpy business so it’s probably not the best way to compare quarter-to-quarter. It would probably be best to look at it from a year-over-year basis. Some of the recognition of revenues are subject to a lot of factors outside of our control so what we tell people obviously, our internal corporate goal this year is 45% growth in both revenues and net income and we are optimistic that we will achieve, if not surpass that goal.
Michael Cox – Piper Jaffray
The gross margin was up sharply which it sounds like is attributable to the international segment of the business. Is it fair to assume that gross margins can remain near 30% for the full year?
Xinyue Jasmine Geffner
That’s what we strive for because we are being very selected from the types of projects that we take on both in China as well as outside of China. We would like to take bigger projects and more profitable projects.
Michael Cox – Piper Jaffray
On interest expense you had noted a couple of times in your prepared remarks that you expect that to rise in the coming quarters. Would it be possible to quantify what your expectation is for interest expense on a quarterly basis going forward with the new debt issuances?
Xinyue Jasmine Geffner
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