Question-and-Answer Session
Operator
Thank you, Mr. Daly. (Operator instructions) We will take our first question from Quinn Bolton.
Quinn Bolton – Needham & Company
Hi Steve, hi Bill. First question, Steve, in your prepared comments you talked about a couple of things. I was wondering if you could provide more color. First, you talked about the broadband business being a little soft in Q3 and expected to be soft again in Q4 as some programs transition. Are those – is that sort of effectively market share – are they market share losses, are they selecting another vendor’s components or is there something else going on? And then also sort of similar color around the – I think you have mentioned that the millimeter microwave business was strong because of demand from your European telcos. I was just wondering if you could talk a little bit more about the applications the European telcos are deploying, driving that demand?
Stephen Daly
Okay, on the broadband side, we participate in a few high-volume programs with some control switch products. We did see that one of our customers went through an architecture change and we chose not to participate in the next generation platform because in our mind that looked more like what we call of a System-on-a-Chip and it became more of a commodity. So, we have decided to stop participating in that specific platform. The product itself will continue to sell in other – at customers in other applications but at a lower volume. So I would look at that as more of a permanent step down in that business specifically.
In terms of the millimeterwave business, you are correct. It was very strong. It was not only strong coming out of Europe, but also from some of our new Asian customers, and we are seeing more and more opportunities from Asia in this end market segment and we think that that should provide the Company some significant growth opportunities in the future.
In terms of the radio bands, there is a wide mix. In terms of, I will say eight to 10 gigahertz radio bands as well as higher. The general common theme is that this equipment is supporting the roll out of 3G and they are generally high date rate platforms.
Quinn Bolton – Needham & Company
So, is it a backhaul – wireless backhaul application for 3G and you need the higher band just to get the data back to the core of the network?
- To read the full transcript on Seeking Alpha, click here »
