Question-and-Answer Session
Operator
(Operator Instructions)
The first question comes from the line of Allan Mishan, Oppenheimer. Please proceed.
Allan Mishan - Oppenheimer
Hey, guys, nice job. First, a quick one for Mike, what do you expect the tax rate to be in 2009?
Mike Tate
So for the balance of this year, we are expecting 1% tax rate on our non-GAAP income, and next year probably about 5%.
Allan Mishan - Oppenheimer
Okay, great. And then for Ron, you gave some details on NETLite in terms of design wins and so forth. Can you give us an idea of whether or not you are expecting revenues from some of those Broadcom and Marvell switch-related platforms in 2008? If so, how significant could they be and when would you see them?
Ron Jankov
It is mainly pre-production in 2008. The real volume starts at the beginning of 2009.
Allan Mishan - Oppenheimer
Okay, great. Thanks very much.
Ron Jankov
Thanks.
Operator
Your next question comes from the line of Adam Benjamin from Jefferies. Please proceed.
Adam Benjamin - Jefferies & Co.
Hey, guys, nice job. I think I recall the same issue with Alcatel in Q2 of '07. So just, Ron, if you can elaborate, is it a similar thing that maybe we should be expecting this kind of seasonal dip next year again?
Ron Jankov
Well, it is a good question. We noticed the same thing, and last year, there was a specific issue with an ASIC they couldn't get delivery on, but nevertheless this makes two years in a row where Q2 is their softest quarter of the year. So I think we are going to be careful about that next year going into Q2 and probably be very conservative with our Q2 going forward.
Adam Benjamin, Jefferies & Co.
Got you.
Ron Jankov
I am sorry, I apologize, but their Q3 is very strong and they were very strong in July, so it does seem like it's -- they kind of like get inventories under control before the summer, similar to what some other people do at the end of the year.
Adam Benjamin - Jefferies & Co.
I got you. Fair enough. The last two quarters, you guys have guided basically zero turns. Should I assume your conservative nature is the same again this quarter?
Mike Tate
Yes, we once again have guidance to full backlog coverage and it is also coming off an already-strong July to date, but, yes, it is consistent with the last two quarters.
- To read the full transcript on Seeking Alpha, click here »
