Question-and-Answer Session
Operator
(Operator Instructions) And you first question comes from the line of Dave Eagan of Lehman Brothers. Please proceed.
Dave Eagan - Lehman Brothers
Hey guys. Congratulations on the quarter. I guess first question is, in terms of the increase in business, which is kind of different from what some of the other guys have reported, where should we expect that increase is coming from?
Len Foxman
Well the increase is coming both from some of our traditional customers, as well as, what you saw indicated here with STMicroelectronics. As I think many of the people who watch us have [seemingly] talked about our attempts to gain some traction within that company, and although we are always slower than we don’t like to see, that’s begun to happen and you can see that in the form of some of the revenue that we have started to built. The other thing is of course our customers are primarily involved in various product areas that are, I think less susceptible to a fad if you will. Power management is found in every product, and so we don’t have to rely on certain focused successes in the market if you will that I think some of the other people are more sensitive to. So, what I would say is behind all of this.
Dave Eagan - Lehman Brothers
Okay. Your number one customer is planning to spend quite a bit of money starting next year on a facility in the Philippines. How important do you think that will be for you guys? Do you think that you'll have any exposure to that?
Len Foxman
Based on what we’ve discussed with them and the business that we’ve made at our new location, I’m quite optimistic about our growing presence in that area.
Dave Eagan - Lehman Brothers
Okay, fantastic. In terms of the cash balance that you guys have right now, right now your stock is about 30% below the IPO price. I wondered if you could discuss what you are thinking about doing with the cash, obviously you could do a buyback, which probably would have some positive impact on the stock, but are there other uses for the cash, say as going out and buying some digital technology that you could integrate with your testers, is there something like that that you might consider doing in the near term?
Len Foxman
Well, in terms of buying technology that would integrate with our existing products, for those people that have seen that attempt made by other people over the years, it’s a very difficult process to go and buy specific capability there. Traditionally, Eagle has done that development internally, and you can rely on the fact that we're using the cash that we have and the visibility we have through the benefits of marketplace to improve our digital performance.
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