Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Brian Alger - Strata Capital Management.
Brian Alger - Strata Capital Management
A number of questions here. I will just crank through them. Can you refresh things for me here, Rich, in terms of where is the cash breakeven point for the III-V business?
Richard Sneider
From a revenue standpoint?
Brian Alger - Strata Capital Management
Yes. Quarterly or annually.
Richard Sneider
Historically, it has been somewhere in the neighborhood of around $10 million to $12 million.
Brian Alger - Strata Capital Management
Okay, should the extent that the business continue to be on a pressure with handsets and whatnot being soft, is that something you guys are watching or you might be cutting back some expenditures in the future or how should we think about that?
Richard Sneider
Yes, I mean I think we are doing what everybody else is probably doing in the industry as far as headcount reductions and so on and so forth.
Brian Alger - Strata Capital Management
Okay, fair enough. Well Richard the military obviously has big highlight right now, great run rate in Q4, you are not giving guidance on the full year but can you maybe tell us how things are going here in the first quarter? Is it on a similar run rate in Q4? Is it faster based on where are the projects are? Should we anticipate that it will maintain that pace or accelerate through the year? Give us some color.
Richard Sneider
The military should accelerate throughout the year.
Brian Alger - Strata Capital Management
And in the first quarter, is it maintaining the pace of Q4?
Richard Sneider
From a product revenue standpoint, yes but I am not sure honestly about the contract revenue. I will take a look at that but from the actual shipment of unit, yes.
John C.C. Fan
I think the momentum on the military is continuing right now.
Brian Alger - Strata Capital Management
Right. So that is obviously accelerating and you talked about getting on the low end of the camera business. What kind of the baseline worse case? I mean is it pretty much how we should be thinking about what consumer electronics could go to or is there some place for any business there that we should maybe canceling going forward?
Richard Sneider
Well, I think we have some orders in Q1 for some of the consumer electronics and legacy products that we still have and I think that some of them might spillover to Q2. We are seeing push outs in a lot of that but I am not really sure if in fact from the push out in Q1 is going to be pushed in the Q2 or is it ultimately just going to be canceled because it just depends on where the whole world economy goes. But at this point, it is really hard to tell you whether it is going to be a, for instance, a zero in Q2 or we are actually going to have some sales. Right now, what we are doing is being told to push stuff out.
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