PMC-Sierra, Inc. Q4 2008 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-01-29 20:10:30.0

Tags: FTTH, Goldman Sachs & Co., Call Transcript, Business, Microprocessor, PMC-Sierra Inc., Earnings, Fiber Optics, Optical Networking, Broadband Internet, Telecommunications, Networking, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). First question will come from Jim Schneider of Goldman Sachs.

Jim Schneider - Goldman Sachs

Good afternoon, and thanks for taking the question. First of all, Greg, could you talk about a relative to the midpoint of your guidance? I mean, clearly there is a decline across the end markets, but I think you mentioned that microprocessors would be down but Fiber-To-The-Home would be up. Can you talk about the rest of the business? And where it is relative to the midpoint?

Greg Lang

Are you talking about for Q1?

Jim Schneider - Goldman Sachs

For Q1, sorry.

Greg Lang

Yeah, both Fiber-To-The-Home and the microprocessor business are going to be flatter than the other two, because I think it's almost as if the timing of those two took a big hit last quarter, and the down side that will see this quarter is heavily driven by our two bigger businesses in both communication products, as well as the storage business.

Jim Schneider - Goldman Sachs

Understand. And then maybe could you just address, you mentioned a couple of things happening in Q2, potentially the resumption of the Fiber-To-The-Home business, maybe some business for backhaul in China, as well as the bigger step-up in the ramp of the HP servers. Can you help us understand, are those the right things to think about coming into the P&L in Q2 or what's the facing of those things?

Greg Lang

I think there is probably two big questions for us right now as we get into Q2 and Q3. One is, has revenue basically have the end markets essentially kind of hit a relative low point and have we worked through the inventory that kind of built up when demand fell off so quickly.

If we work through the inventory, which we think on the Fiber-To-The-Home front will be through that later in this quarter, and early into the next quarter, and also in the other businesses, we should see some growth in our business, just kind of coming back to normal end markets level, end market levels.

The second, and that's true across all the businesses. It's just kind of keeping an eye on when we've actually kind of worked through the excess inventories, so we can drift back up to the end market levels.

The second part of it is, we do have some meaningful new product cycles coming on in the storage business. One is on the SRC side with the HP ProLiant server launch of Tylersburg platforms and then the second is just the general market transition to SAS 2 this next year where we expect to have some meaningful share gains in that segment.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here