Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question comes from Sandy Harrison from Signal Hill. Please go ahead.
Sandy Harrison – Signal Hill
Thanks. Good afternoon, guys. Couple of questions, Kirk, I did the macro economic thing we've heard from pretty much everyone out there but I think if you look at some of the products you guys have introduced during some of these markets that are emerging and so, if you could help us kind of understand some of the challenges that you had in each of those. So specifically in optical, one of the things we continue to hear about the slowing demand for data centers and how those guys are building, however, there is an argument about whether or not they can fund their growth. I'd be interested on your thoughts on that.
And then the follow-on would be, in the medical device area, I don't think people are getting healthier, how is the engine strategy going there? Of these two engines, which ones do you think are going to continue to really spurn [ph] growth radars?
Kirk Mandy
Okay, Sandy, thank you for that. I am going to take the second part first and talk a little bit about medical and we happen to add (inaudible). Basically, our view is that the medical telemetry business that we are building, which now represents more than 50% to 60% of our revenue in that unit and continues to grow, is that it has a very different set of dynamics. We tend to get orders long in advance, business is not choppy, it is much more predictable but it is early days. It is growing very, very quickly. We do not any evidence of any slowdown of any substance on the part of our medical customers which include primarily at this point people like St. Jude and Medtronic and so on. Steve, would you like to answer that?
Steve Swift
I can just admit the same thing, so we seem to be fairly insulated from macro economic concerns. The medical market (inaudible) continue to rise and the (inaudible) for medical devices and medical services continues to grow (inaudible). So we seem to be fairly insulated from that and we continue to see very strong growth and very strong demand for the products that we have created.
Kirk Mandy
On the second part, Sandy, on the optical space as you know, our business is (inaudible) into a few areas. Data Center Interconnect is one, high-speed computing and then of course, large optical cross-connects and routers and so on. In the telecom component, we are definitely seeing some slowdown with customers like Fujitsu and so forth. The business is still tracking along. We are expecting it to be roughly I think flat quarter-on-quarter but we are seeing some slowdown there. As far as the Data Center Interconnect markets go, there is no evidence at this time of any substantial slowdown although we are being very, very cautious.
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