Question-and-Answer Session
Operator
Thank you. (Operator instructions) Our first question comes from the line of Glen Yeung with Citigroup. Please proceed.
Glen Yeung – Citigroup
Thanks. I guess my first question is around your gross margin outlook; Marv, maybe a question for you. We’ve been hearing a lot about 55nm and a lot of discussion about that yields look like. I wonder if you can address that issue and also talk about what your ASP assumptions are in that gross margin outlook.
Marv Burkett
Well, we are doing just fine with 55nm. The yields are just fine. The assumption with regard to ASPs is that I think that it is exactly like we told you last quarter. We don't see major changes in ASPs in any particular segment going forward. The issue is, what is the volume of each of those segments? And I said with regard to the outlook (inaudible) probably a lot of variability in those segments. I think that Jen-Hsun would tell you that we are focused on regaining some market share in what I would call the performance and high-end portion of the desktop GPU market that would enhance ASPs. So I guess that I feel comfortable with our outlook on ASPs.
Glen Yeung – Citigroup
Okay, and maybe as a follow-up, also for you, Marv; if you look out over the next four quarters or so, you pick a time frame, what is the potential for NVIDIA to do incremental cost cutting versus what you have already announced and beyond what is just the potential, what is the intention?
Marv Burkett
Well, the intention is to hold the line on operating expenses and grow revenue. We are totally focused on our opportunities to grow revenue. We have some significant opportunities and we do not want to jeopardize those by doing something foolish in cutting operating expenses. I am happy with the job that we have done so far, but I'm not focused on further cuts in operating expenses and focused on revenue growth.
Glen Yeung – Citigroup
Okay, thanks.
Operator
Our next question comes from the line of James Schneider. Please proceed.
James Schneider – Goldman Sachs
Good afternoon and thanks for taking my question. Maybe just as a follow-up to the gross margin question, could you talk about your progress in the 55nm ramp, when you feel you will be at – fully on production of 55nm and how much 65nm inventory do you have remaining?
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