Question-and-Answer Session
Operator
(Operator Instructions)
And we'll take our first question from Tore Svanberg with Thomas Weisel.
Brian Williamson
Hi. This is Brian Williamson calling for Tore Svanberg. I just have a question on the gross margin. It seems like it's been holding up nicely at the high end of the second quarter expected range. But in the past, you prepared us for slightly lower margins, in the 68% range. Should we expect looking out future margins to trail down to that level or maintain above 70%?
Steve Daly
I think in the short term, you should expect margins that are similar to the recent quarters. But in your long-term modeling, we're still recommending that you use a number like 68%.
Brian Williamson
Can you give an indication about how far out we should trail down to 68%?
Steve Daly
Well, I would envision sometime in 2009, maybe beyond, but it's difficult for us to say, as you know.
Brian Williamson
Sure.
Steve Daly
Our margin is dependent on the mix, the yields, the price points, the volume, and we're pretty much taking specific guidance one quarter at a time.
Brian Williamson
Okay. And can you discuss what you're seeing in the wireless infrastructure market, where there is strength and where there are weaknesses? Some other companies have mentioned strength in markets because of 3G, TD-SCDMA. Others have mentioned continued deployments of GSM. And separately, is TD-SCDMA something to get excited about or is this going to fade away after this year?
Steve Daly
Okay. Well, in the second quarter, we had categorized the cellular infrastructure market as being relatively neutral, meaning relatively modest growth. And that's pretty much what we saw in the quarter. As we go into the second half of the year, we think that will improve, primarily in the fourth quarter. For Hittite, that is driven by a wide range of standards, not only GSM, but also 3G platforms as well as specific protocols for China.
So, we do play in all of these different modulation schemes, and we are seeing success across the board. Our percentage of the market is extremely small relative to the size and the opportunity in this market.
Brian Williamson
Thank you.
Operator
And next we'll go to Jeff Kvaal with Lehman Brothers.
Jeff Kvaal - Lehman Brothers
Hi. Thanks very much. Can you hear me okay?
Steve Daly
Yes.
Jeff Kvaal - Lehman Brothers
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