Question-and-Answer Session
Operator: Thank you Ms. Point. Today's question-and-answer session will be conducted electronically. (Operator Instructions). Will go first to Michael Ciarmoli of Boenning & Scattergood.
Michael Ciarmoli - Boenning & Scattergood
Hi guys good morning, thanks for taking the call. Sure question, I guess Scott, do you have the percent breakdown of revenues on how much was derived from fixed contracts versus per-unit contract?
Scott McQuilkin
Yeah, in the first quarter fixed was probably about 60% and variable was about 40%.
Michael Ciarmoli - Boenning & Scattergood
Okay. And...
Scott McQuilkin
That includes obviously Samsung which is fixed.
Michael Ciarmoli - Boenning & Scattergood
Got you. And given kind of the market conditions, do you anticipate that kind of rate holding, or should we think about that squiring (ph) a little bit higher towards fixed some of maybe the tough market conditions impact, some of the per-unit type of licensees you have?
Scott McQuilkin
As I said in my comments, we certainly saw some declines from our per-unit licensees in the first quarter and we expect some of those in the second quarter, which really relates back to the first calendar quarter in terms of the overall market. We'll see how the market performs for the rest of the year, some other forecast I'm looking at. So just the first quarter is going to be the weakest quarter of the year and the expectation sort of some analysis is that the market will begin to grow after the first quarter and certainly the 3G market, which is growing significantly faster then the overall market is expected to pick up. So, that's my perspective.
Michael Ciarmoli - Boenning & Scattergood
Okay, that's helpful. And just on a topic of Japan, is there any other specific region of concentration in your revenue streams and is there a likelihood for some other regions to I guess employ some of the same regulation changes to their handset market that is negatively impacted the Japanese handset market?
William Merritt
I'd say no to that Mike. The Japanese market is little bit unique because they were first out of the box in terms of development 3G technology and we capitalized on that and that's probably the main reason that in the past they've represented a significant percentage of our royalties. But you look at the rest of our licensee base and their sales are well diversified.
Michael Ciarmoli - Boenning & Scattergood
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