Question-and-Answer Session
Our first question comes from Sanjay Devgan with Morgan Stanley. Please go ahead.
Sanjay Devgan - Morgan Stanley
Good quarter. Just a couple of quick questions if I may. You talked about your design win activity and how you basically met your 2007 design win goal by the month of September. I was wondering based on that goal, what kind of upside can we expect in terms of design win activity going forward. Are you still seeing that same kind of traction? Do you still expect Q4 kind of continue at the same pace? Or basically the rate of design win activity is that kind of continuing or how should I think of that?
Tom Stanton
Yes, Sanjay. If you take a look at it, what we do at the end of every year, is we set a goal for what we call design win dollars. Potentially, what this mean is that, suppose you have 10 design wins each with the potential of $1 million in annual revenue per year, that will give you $10 million design win of annual revenue.
So, we have set up some very aggressive goals for 2007 with very good growth from ’06,but in the first nine months of the year, we met our goals for 2008, because we are essentially seeing an acceleration of design win activity.
I mean, the activity is so strong and it is across so many different market segments that it is almost a bit overwhelming now with the activity that we are seeing. And also, with the addition of storage product, that is adding a whole bunch in new customers, new applications to the mix. So, these accelerated design win activity, I think, will keep going for the foreseeable near-to-midterm. We do not see any deceleration in that.
Sanjay Devgan - Morgan Stanley
Right. Can you remind me, Syed, just briefly what is your typical conversion cycle from win to revenue recognition or realization of revenue again?
Syed Ali
Typically, Sanjay it varies in the broadband sector at somewhere in kind of broadband and consumer sector, somewhere nine to 12 months. In the enterprise, somewhere in the 18 to 24 months and in the access and service provider, it is somewhere between 24 to 30 months before they have actually going to production, I am not really here talking about prototype quantities.
Sanjay Devgan - Morgan Stanley
Sure. Thank you so much, Syed.
Syed Ali
Thanks.
Operator
Our next question comes from Tim Luke with Lehman Brothers. Please go ahead.
Tim Luke - Lehman Brothers
Syed Ali
Tim Luke - Lehman Brothers
Syed Ali
Tim Luke - Lehman Brothers
Syed Ali
Tim Luke - Lehman Brothers
Syed Ali
Tim Luke - Lehman Brothers
Syed Ali
Tim Luke - Lehman Brothers
Art Chadwick
Tim Luke - Lehman Brothers
Art Chadwick
Tim Luke - Lehman Brothers
Art Chadwick
Tim Luke - Lehman Brothers
Art Chadwick
Tim Luke - Lehman Brothers
Art Chadwick
Tim Luke - Lehman Brothers
Syed Ali
Operator
Arnab Chanda - Deutsche Bank
Art Chadwick
Arnab Chanda - Deutsche Bank
Art Chadwick
Arnab Chanda - Deutsche Bank
Syed Ali
Arnab Chanda - Deutsche Bank
Syed Ali
Arnab Chanda - Deutsche Bank
Operator
Krishna Shankar - JMP Securities
Syed Ali
Krishna Shankar - JMP Securities
Syed Ali
Krishna Shankar - JMP Securities
Syed Ali
Krishna Shankar - JMP Securities
Syed Ali
Krishna Shankar - JMP Securities
Art Chadwick
Krishna Shankar - JMP Securities
Art Chadwick
Krishna Shankar - JMP Securities
Operator
Jeremy Bunting - Thomas Weisel Partners
Syed Ali
Jeremy Bunting - Thomas Weisel Partners
Syed Ali
Jeremy Bunting - Thomas Weisel Partners
Art Chadwick
Jeremy Bunting - Thomas Weisel Partners
Operator
Quinn Bolton - Needham & Company
Syed Ali
Quinn Bolton - Needham & Company
Syed Ali
Quinn Bolton - Needham & Company
Syed Ali
Quinn Bolton - Needham & Company
Syed Ali
Quinn Bolton - Needham & Company
Syed Ali
Quinn Bolton - Needham & Company
Art Chadwick
Quinn Bolton - Needham & Company
Operator
Sandy Harrison - Signal Hill
Syed Ali
Sandy Harrison - Signal Hill
Syed Ali
Sandy Harrison - Signal Hill
Syed Ali
Sandy Harrison - Signal Hill
Operator
Krishna Shankar - JMP Securities
Syed Ali
Krishna Shankar - JMP Securities
Operator
Jagjit Sahota - Wedge Partners
Syed Ali
Jagjit Sahota - Wedge Partners
Art Chadwick
Jagjit Sahota - Wedge Partners
Art Chadwick
Operator
Jeremy Bunting - Thomas Weisel Partners
Syed Ali
Jeremy Bunting - Thomas Weisel Partners
Operator
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Art Chadwick
Jeff Osher - JMP Asset Management
Operator
Syed Ali
Operator
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