Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Steve Ferranti with Stephens Inc.
Steve Ferranti - Stephens Inc.
Hi, guys, good afternoon. Congratulations on a nice quarter.
Ralph Quinsey
Thanks, Steve.
Steve Ferranti - Stephens Inc.
It appears that you are one of the fewer players in the industry today that actually has equipment capacity online that's in excess of your current needs. Do you see that as an advantage for you today?
Ralph Quinsey
Yes, we do, Steve. We have invested in capacity over the last several quarters. We've discussed that on calls. We think, we've got a great lineup of new products. We're seeing good uptake with our major customers, and we're expanding with new opportunities. So, I look forward to filling up this capacity, and continuing to manage that number upwards.
Steve Ferranti - Stephens Inc.
Okay, great. And I guess turning toward the 3G side in your handsets business. Looked like nice growth year-over-year, but a slight downtick sequentially. Can you give us some color behind that?
Ralph Quinsey
Sure, if you dig into the numbers, the 3G, the wide-band CDMA portion of the number was actually up slightly sequentially as well, and the EDGE was down slightly. If you look at Q2, where we report combined numbers, we jumped up and then settled back down. Still, great growth year-over-year, and I expect to see continued good growth in Q4 and in 2008. So, I would read more of that into just a leveling and an adjustment between Q2 and Q3 than a dominant trend. The dominant trend remains good, strong healthy growth.
Steve Ferranti - Stephens Inc.
Okay, great. And to what extent do you see, you mentioned in the script that your EDGE transmit module business was ramping. To what extent do you see that as a sort of an incremental opportunity for you?
Ralph Quinsey
That's certainly part of our growth. We're shipping millions of units this quarter and we will ramp up to millions more next year. That program launched a little later in the year than we had anticipated, largely due to issues outside of our control, but good driver, good volumes, good part of the growth story in 2008 Q4 and 2008.
Steve Ferranti - Stephens Inc.
And I guess, do you see the initial opportunity there with some of maybe your existing baseband partners, or would it be with maybe some of the newer players in the space?
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