Question-and-Answer Session
Operator
(Operating instructions). And we'll take our first question from Tim Luke with Barclays Capital.
Gomabas – Barclays Capital
Hi, this is Gomabas [ph] for Tim Luke. Congratulations on the quarter.
Patrick Henry
Thank you.
Gomabas – Barclays Capital
I was just looking – if you look at the geographical focus you guys had in China, Korea, could you give me some more color on that and how you see crashing in North America and Europe as well?
Patrick Henry
Yes, currently over 95% of our direct customer sales are in Asia, primarily China, but from an end customer standpoint, nearly, all of our current revenue is based in the U.S. I would say. What do you think, Dave, about 95% plus?
David Lyle
Right.
Patrick Henry
Because it's primarily based on the Verizon deployment for MoCA and then for our somewhat outdoor unit business with Directv and Echostar. We do see some opportunities for growth in Asia, somewhat smaller in terms of Japan and Korea, but a longer term growth opportunity in mainline China with our access business. We don't anticipate that being a significant revenue growth opportunity for us until late 2009. In the European market our growth opportunity is there, really in the satellite outdoor unit space we're working with a number of satellite providers. But Directv and Echostar by far the largest satellite service providers and we'll see some incremental improvement from revenues as we get into the second half of '09 from the European satellite operators. The other opportunity we have in Asia is with our silicon tuners as we move to a CMOS silicon tuner. We see that we should see some growth from the tuner business in late 2009 as well.
Gomabas – Barclays Capital
Thanks. One more question. What's the typical seasonality that Entropic sees in Q1 and Q2 if I may ask?
Patrick Henry
Yes, from a traditional seasonality standpoint once we get to a run rate business level as we have with the Echostar portion of our satellite outdoor unit business, we see a strong seasonal quarter in Q4 and a lighter seasonal quarter in Q1. With Directv we're still in a ramp mode, so we're more of a product cycle company so we're not as subject to seasonality while we're in a ramp mode with a new operator base deployment. In the case of Verizon, although they did have this bump in the road in Q2 relative to their business, we do see that we're still in a growth mode with the Verizon business over time, so we might see some modest seasonality in Q1, but I think it will be a little bit muted by the fact that we're still in a product cycle story with them as well.
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