Question-and-Answer Session
Operator
(Operator instructions). Our first question comes from the line of John Vinh with Collins Stewart. You may proceed.
Ragu Madabushi - Collins Stewart LLC
Yes, hi, this is Ragu Madabushi [ph] for John Vinh.
Joseph Dunsmore
Hi, Ragu.
Ragu Madabushi - Collins Stewart LLC
Hi. Can you talk a little bit about the key end markets that you're seeing strength in, and also maybe touch a little bit on backlog?
Joseph Dunsmore
Yes. What we're seeing, obviously, there's some challenges out there and there are markets that are getting hit by the economic environment, lot harder than others. The one that we're seeing that's getting hit the hardest and is the weakest is retail and point of sale. And so that's having an impact on our USB business and product line and other product lines that we sell in to that particular segment. Beyond that, what we're seeing in terms of strength is, in particular with our wireless products and our wireless drop-in networking, we're seeing a lot of opportunity emerging in the energy management arena. We have a lot of opportunity there. We have existing customers and several customer, large customer opportunities in the pipeline. And then there are several other vertical markets that are pretty strong with regard to wireless drop-in networking. The tank monitoring application is kind of a key application where we're seeing a lot of opportunity. And in general, we're seeing a lot of green applications beyond energy management, working with the utilities on providing wireless technology to the meter, to the home. We're seeing opportunities in water conservation for vertical opportunities in the irrigation control system arena. And we're seeing remote management and control for applications like wind turbines and other applications that are green. So we see that kind of macroeconomic force is creating opportunity for us with this wireless drop-in networking solution.
Ragu Madabushi - Collins Stewart LLC
Okay. Thank you. On your CDM business, are you seeing any UK macro exposure? Any negative effects from the slowdown?
Joseph Dunsmore
Yes, we are. We started to see that pretty early on last quarter. The UK was the first to really feel the downturn, and that has spread to Western Europe. So we anticipate that environment is going to be a recessionary environment in 2009, the UK probably the most significant. And within the UK point-of-sale being the most significant vertical segment that is being impacted.
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