Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Safa Rashtchy with Piper Jaffray. Please proceed.
Safa Rashtchy - Piper Jaffray
Hi, thank you and good afternoon everyone. Thanks Jeff and best of luck in your new ventures and welcome aboard Jim. Thank you for giving us some good guidance for 2007, especially on the quarterly variations. Regarding that could you -- since the expense levels have been varied, could you give us what level of margin -- profit margins, operating margins whatever are you expecting next year or put another way you are looking in the range of I believe 38 to 40% or so revenue growth, what kind of operating profit goal should we look at for 2007? And, I had a quick follow-up.
Claire Long
Okay. We are obviously going to keep increasing our operating margins, but I wouldn't expect to see a lot of leverage between Q3 and Q4. As we talked about, we’re going to be some investments in marketing and sales, and we should see some leverage in G&A, which will offset that. Going into '07, we’re going to continue to reinvest into sales and marketing and product development. We expect to get to about 20% operating margin by the end of '07.
Safa Rashtchy - Piper Jaffray
Okay. Thanks, Claire.
Claire Long
You're welcome.
Jeff Lunsford
Yeah, and the only thing I'd add to that Safa is that's with litigation expenses and then what we've said in the past, it should be 3 or 4, 5 points higher without.
Safa Rashtchy - Piper Jaffray
Right, that's perfect for which my follow-up, which is can you give us an update on your policy towards the litigation, is there any rational to consider settlement or where are you kind of in evaluating what you should be doing next regarding that?
Jeff Lunsford
Well, as we've said all along, we view that situation very pragmatically and are constantly evaluating whether it makes sense to engage in those type of discussions. We're really -- trying to back away from discussing any particulars around it. We continue to say that we believe we do not infringe on the patents they've asserted against us, and that they are in fact infringing on the patents that we have asserted.
Safa Rashtchy - Piper Jaffray
Great. Thank you. Great quarter.
Jeff Lunsford
Thank you.
Claire Long
Thanks.
Operator
Your next question comes from the line of David Hilal with FBR. Please proceed.
- To read the full transcript on Seeking Alpha, click here »
