Question-and-Answer Session
Operator
(Operator instructions) The first question comes from Chenyi Lu of Brean Murray. Please go ahead.
Chenyi Lu – Brean Murray, Carret & Co.
Hi. Very good quarters, congratulations. I just a two or three questions I like to ask. First question regarding your gross margin. This quarter the gross margin is 61.2%, which is I believe it's the highest over the last 8 or 9 quarters. So, my question to you is what do you expect the gross margin going forward over the next 6 to 12 months?
Brian Lin
As we have introduced, this quarter's gross margin, 51.2%, is actually definitely above the guided gross margin, which is 50 to 55% of our – in our regular time. A high gross margin this quarter is mainly due to this exclusion of a contract which tend to be actually a higher gross margin during this period and also for the higher percentage of sales of our propriety products. So, I believe in the long run, up in the full year, I think our gross margin guided a range that's due in the 50 to 55%. But, based on the backlog we have, currently, which will be recognize for doing the first and the second half of the year. I think we will have a higher level of gross margin in the second half of the year of 2008.
Chenyi Lu – Brean Murray, Carret & Co.
Okay. Great, thank you. My second question regarding your backlog, which is also very strong, $71 million by versus the one you have by the end of 2007, $62 million. So, my question here is among these backlog to use and how long it would take this backlog to recognize as revenue? Every 12 months or 6 months or can you just comment on that?
Brian Lin
Yes. Actually it depends on the contract in our backlog but I think it's in the range of 6 months to 12 months around that, the duration of the contract.
Chenyi Lu – Brean Murray, Carret & Co
Okay. So, if I have to assume, can I associate it –
Robert Yuan
Certain projects take longer and certain projects take shorter, so it's really hard to say that percentage.
Chenyi Lu – Brean Murray, Carret & Co
Okay, great. Thank you. My third question regarding your international expansion, I know, you just signed the partnership contract – partnership with Indian distributor. So my question to you is, what do you see the international revenue in 2009 – 2010?
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