Question-and-Answer Session
Operator
(Operator Instructions)
We will go first to Justin Cable with B. Riley & Co.
Justin Cable - B. Riley & Co.
Just a couple of quick questions here on the guidance for the next fiscal year. Now obviously there is going to be a different mix here that we are all going to assume, but what does this guidance basically get to on an overall basis in terms of a top line growth?
A. Clay Leighton
As you are aware, we are not providing overall guidance. I think you will have to assume some mix difference, or you will have to make some assumptions about the mixes in those businesses, but it is clear that we are predicting growth for Sonic and feel that certainly for a couple of the businesses, the direct business and APG, that we should see substantial growth in this coming year.
Justin Cable - B. Riley & Co.
Basically you are saying that this guidance is assuming that there is no benefit on the pro side from the HD conversion?
A. Clay Leighton
That is correct. We have taken it out now in terms of any sort of growth projection in the numbers because it has been honestly very hard to project and we have been wrong about those projections to date.
On the other hand, I think we firmly believe that at some point, we are going to see some significant growth in that business. It is just that we have been wrong about it, so we are not putting it into our guidance at this moment.
Justin Cable - B. Riley & Co.
Okay, so obviously if there is increased adoption there, then we could see that benefit -- it would not be unreasonable to assume that there would be some increase in adoption over the next year, if everyone can agree to a format.
A. Clay Leighton
I think that is correct, yes.
David C. Habiger
I should also point out that we are not suggesting there is a competitive issue or a pricing issue. The ASPs are the same, if not higher based on our total HD offerings. We are ultimately saying it is a question of when, not if. We are certain that the market will adopt a format, but we have had a very difficult time trying to predict when these two will either come together or a leader will be determined and anointed. You can imagine that makes all of our jobs difficult to predict when a third party is going to drive the market.
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