Question-and-Answer Session
Operator
Thank you. We will now begin the question and answer session. (Operator instructions) Our first question comes from Matt Robison of Pacific Growth Equities. Please go ahead.
Matt Robison – Pacific Growth Equities
Hi Gins, a nice quarter, a couple of questions. First, why was inventory up so much?
Errol Ginsberg
I do not think there is any particular reason for that. I think that it was down a little bit the last few quarters and it just – it tends to ebb and slow a little bit, and you know, some of it is stocking up on Yukon where it was a new product for us. We launched it last quarter and we just wanted to, on that particular product, make sure we had enough in stock to meet demand, but I do not think there is anything really unusual about the level and I think it tends to go up and down a little bit.
Matt Robison – Pacific Growth Equities
It seems like it was one of the bigger factors that you are not achieving the level of operating cash for you since the June quarter?
Errol Ginsberg
Yes.
Matt Robison – Pacific Growth Equities
Regarding Yukon, I think it was 7% of sales in the June quarter. You did not say it in the September quarter, scared of (inaudible)?
Errol Ginsberg
No, we would rather not give out that number. It was up significantly from that and it is really – for people who want high volume, 10-gig, it is really the card of choice. We sell it in a 4 and 8 port form, and it is a very popular card, and it is doing quite well for us.
Atul Bhatnagar
Yes Matt, this is Atul. Another comment I will make is Frost & Sullivan will announce the 10-gig market share in Q1 of next year, sometime there, and you will see Ixia is accelerating very well in 10-gig sales.
Matt Robison – Pacific Growth Equities
Well, hopefully, you will also employ a high end of your guidance. So, why did the software rebound?
Atul Bhatnagar
Let me add a few things, and maybe Tom can add a few more comments. I think we definitely focused on demand generation on some of our software programs like IxChariot, and in a very focused manner reaching our installed base, reaching new customers, and I think that made a difference and those programs will continue.
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