Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Sanje Jevjin with Morgan Stanley. Please go ahead.
Sanje Jevjin – Morgan Stanley
Just a couple of questions, you talked about the strength you experienced at Cisco and I was wondering if you could give us a sense of – I know in aggregate only about a quarter of your design wins have gone into production to date – but specifically at Cisco is that percentage greater or less than your total design wins? How are you doing at Cisco in terms of design wins that have gone into production today?
Syed B. Ali
I would say it’s probably the TAM or slightly lower than our overall percentage.
Sanje Jevjin – Morgan Stanley
And as you’re exiting the year, when you look at your design win pipeline do you expect that percentage, that 25% or so, to meaningfully increase? Or how should we view the number of design wins that you’ve had, how should we view them in terms of progressing for the year? What percent do you think will actually have gone into production by then?
Syed B. Ali
You know, Sanje, every quarter or every half year we are adding new design win dollars into the pot, so we expect it to be, on a percentage viewpoint, that is percentage of design win dollars in production, to remain relatively flat from now towards the end of the year.
Sanje Jevjin – Morgan Stanley
And then one final question if I can, Syed? Given in general there’s been quite a bit of concern regarding the macroeconomic environment and especially the demand trends within your served markets and I think on the call you did a great job outlining what you were seeing but given that Cavium is a product cycle story I was just wondering if you can share with us your confidence level regarding your growth prospects for 2008 and 2009 relative to where you were at the beginning of the year? If you just highlight that for us.
Syed B. Ali
I think, Sanje, as I’ve said design win rates are very robust, very strong winning at the major platforms, at the major tier one customers that matter and I think most importantly like I said in the conference call in my opening talk that we are at the beginning of several new product cycles whether it’s in the enterprise, in the data center, in the broadband or in the access and service provider market, so these new product cycles are going to have excellent growth. You know they may be a little bit higher or a little bit lower than we would like them to be but you look at where they are today to where they will be in the second half of the year and in 09 and 010 there will be significant growth in all these major product cycles. So we feel very, very good about our growth prospects in 08, 09.
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