Question-and-Answer Session
Operator
Ladies and gentlemen, we'll now be conducting a question-and-answer session. Thank you. (Operator Instructions) Our first question from Carter Driscoll with Stanford Group. Please state your question.
Carter Driscoll - Stanford Group
Good afternoon gentleman. Thanks for taking my call. My first question results from the Microsoft relationship. Have you seen any acceleration in the deployment of the Exchange Server. You talked most recently about, really the impact more heavily in 2009 and 2008, and then I have a couple of follow-ups.
Ben Rabinowitz
Driscoll, at this point, we are definitely getting deployed and by the few verticals. But it's still very early in terms to speak of a ramp-up. So, it looks very promising. It's nicely distributed in terms of the types of customers and the size of the customers. But again this is definitely more in 2008 than 2009 story as we said before.
Carter Driscoll - Stanford Group
Can you talk generally about what you are seeing? I mean you mentioned one thing that the March quarter seems to be getting off to a good start, specifically the enterprise side you have seen weakness from some of the other equipment and component vendors. What gives you confidence that you are going to continue to buck the trend in that? You are not going to face some of budgets squeezes that might be coming down the pipe?
Ben Rabinowitz
Yeah I mean we haven't seen weakness and we are comfortable and since our discussions with their customers and what their needs are. So we're not seeing this.
Carter Driscoll - Stanford Group
Could you talk about the progress in the cable market and what your relationship with Nortel, if that has changed materially since last quarter?
Ben Rabinowitz
No the relationship with Nortel is very good. With the cable companies, we are obviously with our gateways a part of their solution, that we are selling through the MSO’s and the relationship both directly with the MSO's as well as working side by side with Nortel remains as it was last quarter and it's a good relationship.
Carter Driscoll - Stanford Group
And just one question for Nachum. Were expenses affected materially by the exchange rate at all?
Nachum Falek
It will be on the fourth quarter but we are using hedging, so at this point it wasn't affective, at least not on the fourth quarter.
Carter Driscoll - Stanford Group
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