Question-and-Answer Session
Operator
Thank you, ma’am. (Operator instructions) And our first question comes from Ajit Pai with Thomas Weisel Partners. Go ahead, please.
Sven Eenmaa – Thomas Weisel Partners
Hi, this is Sven Eenmaa calling in for Ajit. I have a couple of questions, if I may. First, wanted to ask about your revenues from Tellabs in the current quarter and what is the outlook there?
Tom Keegan
Sven, how are you doing?
Sven Eenmaa – Thomas Weisel Partners
Good.
Tom Keegan
This quarter, our percentage was approximately 23% from Tellabs and the outlook with Tellabs do remain strong, but we are being very cautious about the number. We think its percentage is probably going to remain in its historical percentage, but we are being cautious about the gross number revenue. So we see some downward side both on the core passive and on the ROADM as well.
Sven Eenmaa – Thomas Weisel Partners
And in terms of the inventory writedowns you guys took in the current quarter, which products were there or what the areas were impacted?
Tom Keegan
The primary source of that came from the active product line and it resulted – basically as the business changed over time and we are getting the inventory process under control and looking towards the future orders that are going to be out there, we reassessed the salability of some of those products and were obliged to take the writedown.
Sven Eenmaa – Thomas Weisel Partners
Okay. By any chance are you changing focus on any of the (inaudible) products or which – is there a change in product strategy, which areas you will be targeting or is the focus still the same as per last quarter?
Tom Keegan
In the – this quarter the focus will be substantially the same. On an ongoing basis we review our transceiver product portfolio with a view toward making sure we are keeping the strongest margins and over time reduce or replace with new designs the lower margin products.
Sven Eenmaa – Thomas Weisel Partners
Okay. And the last question, I just wanted to ask the remaining above 10% customers’ specific revenue shares in the current quarter.
Tom Keegan
The remaining 10% customers, you know Huawei and Alcatel-Lucent–
Sven Eenmaa – Thomas Weisel Partners
Yes.
Tom Keegan
Now, Huawei would be about 14% – 13% to 14%, and ALU about 10%.
Sven Eenmaa – Thomas Weisel Partners
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