Question-and-Answer Session
Operator
We will now start the formal Q&A session. (Operator Instructions) We do have our first question coming from Michael Coady of B. Riley.
Michael Coady – B. Riley& Co.
Regarding the guidance for the March quarter of $6 million, could you provide a little bit more detail? You mentioned the VoIP revenue would be up and optical down, is there any DSL included in the guidance?
Faraj Aalaei
Yes there is a small amount. I think the amount is in like $400,000 or something like that.
Michael Coady – B. Riley& Co.
Okay and your comment regarding the growth rate of 38% based on the run rate of?
Faraj Aalaei
It’s an example if you look at Q1 with out guidance being about 5.5% or 5.6%. What you’re looking at is, if you just multiple that by four it gives you $22 million and then compared to 2007 that’s about a 38% growth year-over-year but our goal obviously is to beat that.
Michael Coady – B. Riley& Co.
I see. And given the current changes you’ve made $21 million annually to the op ex or to the cost structure beginning in the third quarter. Do you expect that to be fully realized on July 1st?
Faraj Aalaei
Yes we expect that you know all the restructuring work that we have is done with and in Q3 we can get our fist clean quarter with the new model.
Michael Cody – B. Riley
Okay. Regarding the accrued liabilities and the reversal there of, what of that was based on the DSL sale? And what on that is based on the fact that it’s somewhat old and you haven’t heard from?
Faraj Aalaei
Its you know we do this thing from time-to-time, it’s to evaluate kind of what we’re doing with royalties obviously selling the DSL business prompted us to have a deep look at that and looking at the standings, basically the patent law of the land and the fact that you know we’re no longer in this business, we decided to do this reversal.
Michael Cody – B. Riley
Okay makes sense. And then I missed a comment that you made earlier on about the VoIP business, you mentioned your design win with [inaudible] qualified as a service rider in Japan, prior to that you mentioned a customer with whom you have a design win and work with in the service providers that has been done there, did you say that that was Alcatel-Lucent or did you mention a name there?
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