Question-and-Answer Session
Operator
(Operator instructions) We'll go first to Krishna Shankar with JMP Securities.
Krishna Shankar – JMP Securities
Yes, Alex and Angela, congratulations on a good quarter.
Alex Hui
Thank you.
Angela Chen
Thank you.
Krishna Shankar – JMP Securities
As you look at the outlook for the June quarter, you mentioned five high-growth serial areas, Alex, PCI-Express, HDMI, Serial ATA, USB, and DisplayPort. Can you rank order the strength in these five areas and where you expect to see the most growth from?
Alex Hui
We expect the key driver will come from PCI-Express Gen1 and Gen2, as well as SATA, and then towards the later part of the year we'll see DisplayPort begin to pick up also. And USB has been ongoing for some time now, and we expect the business to continue to move up.
Krishna Shankar – JMP Securities
I see. And is the lot of PCI-Express strength is that in notebooks or is that also in desktops and servers?
Alex Hui
Actually, yes, we see them in all three areas. But I would say notebook is probably the strongest one for us.
Krishna Shankar – JMP Securities
Okay. And my final question, how do you see your networking equipment customers, people like Cisco and others, what kind of demand drivers are you seeing in the networking world?
Alex Hui
We can't really comment on specific customers. But I would say, as I comment, we see that our networking business is pretty much on track similar to what we've been seeing historically.
Krishna Shankar – JMP Securities
Okay, great. Thank you. And then gross margin outlook, Alex, given this mix, what should we expect for gross margins as we get into the second half of calendar '08?
Alex Hui
I think we continue to stand by our long-term goal, expanding margin 2% to 3% a year. It's not going to come in one quarter, as you can see now from a historical trend. But we feel year to year, that is the goal that we continue to drive towards. And again, the key is to driving an increasing mix of our Focus FCP and IC products.
Krishna Shankar – JMP Securities
Great, thank you.
Alex Hui
Thank you.
Operator
We're next to Jay Srivatsa with Roth Capital Partners.
Jay Srivatsa – Roth Capital Partners
Thank for taking my question. Nice quarter, Alex.
Alex Hui
Thank you very much.
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