Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first today to Tim Fox - Deutsche Bank.
Tim Fox - Deutsche Bank
First question is, just digging ina little bit on the NVIDIA announcements, obviously a very solid endorsement of the technology. When vendors say that a company has standardized, one has to dig into that a little bit further and could you just talk a little about how we can gauge how material this deal is for you? It’s obviously for 45-nanometer, but at NVIDIA how big of an implementation would that be for 45-nanometer and are you seeing any possible backward adoption into 65-nanometer?
Roy E. Jewell
Basically, to give you the scope of this, our understanding is they have standardized on the Magma flow from Netlist to GDSII for 45-nanometer, and, on top of that, there has been some transition to 65-nanometer designs to our flow also. For us it’s a very major announcement because NVIDIA does leading edge designs, probably some of the most difficult inthe industry, and it’s a validation that our technology’s applicable for really the broad cross-section of leading edge designs in this business.
Rajeev Madhavan
Tim, I just want to add one thing. As you remember, we had a similar endorsement from them on our Quartz DRC product early on, which is a 90-nanometer. So everything below that 90, 65 and 45, Quartz DRC is the solution that they use for physical verification. So this is a very big endorsement for us in that we have taken that from a physical verification to now and physical implementation too as well into that account.
Tim Fox - Deutsche Bank
Okay, and secondly around Quartz DRC. Can you talk a little bit about whether the new Automator rule DAC solution you have has helped in increased sales pipeline, closing deals, and could you just talk a little bit about how, if it’s helped at all, maybe quantify where that growth may go this year?
Roy E. Jewell
Number one, I’ll say it’s been a great asset removing the barriers to adoption versus the market leader in this business from Mentor Graphics. The part I’ll say is that relative to our pipeline right now and Quartz DRC, it is by far the largest we have seen in at least the last two years. And a lot of that is that we have been able to start engaging more people because the labor required to do these new DACs is quite reduced.
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