Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Reik Read with Robert Baird.
Reik Read – Robert W. Baird
Hi, Good afternoon. I was hoping you guys to answer maybe a question over an 18-month time frame. If I look at revenue growth opportunities, do those opportunities as we talk about the back half of '08 and 2009 come from an expanded number of programs from the existing four players or do you see expanding to more customers?
Reza Meshgin
Hi, Reik, it's Reza.
Reik Read – Robert W. Baird
Hi, Reza.
Reza Meshgin
Yes. The majority of that expansion will come from the existing key customers. We do have a long-term plan to expand our customer base but for the short term and for the foreseeable future, that's going to be the case.
Reik Read – Robert W. Baird
Okay. Then off of that, can you just talk a little bit about the existing level of maturity with the existing product portfolio, given that you have some continuity between the key customers?
Reza Meshgin
Yes, between Q1 and Q2, there was definitely a continuity of the matured product that we ran, and that's actually what we said contributed to better gross margins. Now, we have programs that are in the start-up and in the ramp-up mode within this quarter. Some of them will ramp up within this quarter, some of them will start to ramp up towards the end of the quarter and they will add basically to the growth opportunities for us in our upcoming quarters. Now, that doesn't mean that the product that we have as of now is totally going to retire and go away. That will continue but then the new product line will replace them.
Reik Read – Robert W. Baird
As these new products ramp, is there a similarity with respect to the products so that that level of maturity remains somewhat similar or is there a difference and the maturity goes up and down?
Reza Meshgin
Very, very consistent. However, one thing is that eventually and in time, the complexity of the product is going to get higher and the material content is going to get higher. On the other hand, as far as if it would mean much difference in our performance and operation, no, it shouldn't.
Reik Read – Robert W. Baird
Okay. But I would take it from your comments that as these new programs ramp, they are probably not quite as mature as the ones that you have seen this continuity from first quarter to second quarter?
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