Question-and-Answer Session
Operator
(Operator Instructions)
Our first question comes from the line of John Harmon with Needham & Company. Please go ahead.
John Harmon - Needham & Company
That's much better. Hi. Good afternoon and congratulations.
Joe Liu
Thank you, John.
Shirley Yin
Hi, John.
John Harmon - Needham & Company
It looks like you are expecting OCP's revenues to decline about 6% sequentially, is that due to fundamentals in OCP's business or does that reflect the expected products line cancellations?
Joe Liu
Being the first day of the management, we have put in a lot of the reservation in terms of digging in on the details of the nature of the business in terms of its gross margins and why that business is losing that much of money. And so, obviously, we're giving rather conservative outlook on the future business, and we will probably look at options and alternatives. But at this point, I think we're being conservative giving out the numbers.
John Harmon - Needham & Company
Fair enough. Thank you. You talked about OCP Asia being a fabulous transceiver company and you talked about considering a couple of options. Maybe you could tell us what the options are and which one do you think you are leaning towards?
Joe Liu
Well, primarily we fall into the options of divesturing. The fab, in the worst case, you can shut it. And the other option could be, we take a minority interest in the spin-off or we take a majority interest on the spin-off. But all in all, we'll probably continue business relation with that surviving entity.
John Harmon - Needham & Company
Okay. Thank you. And just one last question. You talked about expecting operating expenses to be flat for a couple of quarters. I'm sure you'll implement your integration plan. I would think there could be some immediate savings and what's the outlook for selling OCP in the second quarter?
Joe Liu
That we have received an offer and the offer is in the second phase on the escrow, and we have received a deposit of $1 million. And I believe according to the agreement that we will be successfully closing on December 20th. The net of the expense would probably be a net $27 million. The selling price was $28 million.
John Harmon - Needham & Company
Okay. And what about just being able to reduce some corporate expenses immediately?
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