Question-and-Answer Session
Operator
Operator instructions. Our first question comes from Jay Srivatsa of Roth Capital Partners.
Q - Jay Srivatsa, Roth Capital Partners
Hi, Dave. Congratulations on beating the street DBS(?) consensus.
A - David French
Thank you, Jay.
Q - Jay Srivatsa, Roth Capital Partners
A couple of questions if I may. You spoke to the digital TV strategy a little bit. Could you expand on that? I know you've been working with Genesis on this. Could you tell us how the outlook is in terms of the second half of this year?
A - David French
Digital television penetration has continued to be pretty strong. We sell data converters and embedded DSPs, data converters more broadly at a lower price point, and embedded DSPs in some high end branded equipment, particularly in Japan, at a little bit higher price point. The reference designs that we're designed into suggest, with the video chip suppliers such as Genesis, such as MediaTek and
others, suggest that we could participate pretty strongly selling A/D converters, D/A converters, and the like pretty strongly in the second half of the year. It's my sense that the revenue, or the manufacturing run rate during the second calendar quarter, our fiscal Q1 just completed, was a little lower than what people anticipated; might be up a little bit in total, but not up as much as a lot of people had anticipated, I believe. It's my sense that the second half should be pretty strong, if not very strong, though we've still got guided pretty cautiously on that front. So our assumption is a relatively modest growth in the second half; my gut says it ought to be a bit stronger.
Q - Jay Srivatsa, Roth Capital Partners
Could you tell us what the status is in terms of the MP3 player market? We've heard multiple reports of maybe there was some weakness in that market in the June quarter. Could you kind of set the stage for us there? What are you seeing out there?
A - David French
We're not necessarily the world's experts in the MP3 player market, but we do participate some, and we have a lot of design wins for the low power products we introduced in the first half of last year. Many of those design wins have not yet driven significant revenue. That's somewhat of a disappointment, as I pointed out during my earlier talk. And a lot of the reasons that have been provided to us have led me to conclude that overall retail channels might have a little bit too much inventory, not to mention that the major player in the branded space, that being iPod, has really done so well against some of the other competitors outside of China that other players are not doing exceptionally well, it appears to me. However, in China the volumes are pretty high. We've seen recently some more interest in our lower priced low power products in Asia of late that we brought out since our first introduction. And it's obvious that there is a relatively high volume demand over in Asia, in addition to the branded market that exists here in North America. I think second half should be pretty good for that market overall.
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