Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Sandy Harrison - Signal Hill Group LLC.
Sandy Harrison - Signal Hill Group LLC
Just a couple questions on some of the results you had here. I guess the one question is, it sounds like Comcerto is really starting to come into its own and the fact that in your prepared remarks that the design wins are picking up and gathering momentum. What are some of the thoughts behind that? Is there a particular event? Is the converge platform starting to really pick up momentum and is that an industry event? Just would appreciate anything else you could offer us on this.
Raouf Y. Halim
Certainly Sandy. I think what we are witnessing is the increasing adoption of IP based technologies at all levels of the network, not just in the core of the network or traditional so-called Class 4 applications but increasingly in fixed mobile convergence where we are seeing a significant uptick in demand and have reported that previously and more recently in the pickup of next generation networking or NGN for short. That is the phenomenal packet positional services all the way to the subscriber. We’re quite happy with the uptick of our Comcerto processors that are specifically optimized for these next gen applications worldwide and in particular the one event I would point to over the past quarter, maybe couple quarters, is the advent of GPON and the uptick of GPON particularly in China at a very rapid clip. We are very well positioned to benefit from that trend of packetization over fiber optic networks and we expect in fact that the deployment model will pick up dramatically outside of China as well into other parts of Asia, BRIC countries and eventually to Western Europe.
I would only add to that that the benefits we are seeing in terms of production revenue ramp today is with products and design wins we have scored several years ago. They are just now going to production. We have continued to win significant designs with the top tier equipment manufacturers over the course of the last two years and we are in fact experiencing yet another acceleration of design wins at this time as I reported on the call which bodes well for the future of this business.
Sandy Harrison - Signal Hill Group LLC
I guess asking the question sort of a different way, if you look at it, we’ve all been expecting this transition to IP and talking about it, not only you but the industry in general and it just seems like people are being caught by surprise as we’ve started that transition. I’m just trying to figure out what may be causing the re-acceleration out there across the board?
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