Question-and-Answer Session
Operator
[Operator Instructions]
Our first question comes from the line of Jeff Van Rhee from Craig-Hallum. Please go ahead.
Jeff Van Rhee - Craig-Hallum Capital
Good morning, guys. Very nice quarter. Paul, just a couple questions. First, it all went by very, very quickly there but you touched on embedded and pretty significant sequential growth, more so than seen in a long, long time. Can you just give maybe top one or two reasons again why we saw such great sequential growth?
Paul A. Ricci - Chairman and Chief Executive Officer
The quarter was, as was last quarter in embedded, this quarter was above our own internal expectations. And I think it drew not on a single thing, but really on execution across the business. I think it is reasonable to say that the demand for speech within the mobile embedded segment is outpacing our plans.
I think our design wins are beginning to accrue royalties, past design wins are accruing royalties and the performance of those royalty reports suggest that the demand for devices continues to be quite robust. It was very strong quarter in sales activity and also in integration services we delivered. So it really wasn't one thing.
Jeff Van Rhee - Craig-Hallum Capital
Was there anything... I guess what I would call onetime in nature or large prepay or anything else? Or was the bulk of the upside really driven by volume of pre-existing design wins?
Paul A. Ricci - Chairman and Chief Executive Officer
Certainly the majority of the revenues were driven by previous design wins, the large majority of the revenue. There were new deals in the quarter, and some new deals involve... most new deals involve some amount of prepay, and that is true in almost every quarter.
It is difficult to know whether any given quarter what level of those will occur. I was less concerned about that in my advice for the fourth quarter than the fact that simply royalty reports from our OEMs, may be lower in the fourth quarter simply because summer month sales of their devices are lower.
Jeff Van Rhee - Craig-Hallum Capital
Okay, and then on the network side just clarify for me... I know you broke out a lot of the contributions of acquisition and tried to get right down to organic. You had previously looked for 22 to 26% if I remember right, growth out of network for the year.
- To read the full transcript on Seeking Alpha, click here »
