Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of John Vinh – Collins Stewart.
John Vinh – Collins Stewart
On cash burn, the $10-15 million is that kind of a run rate that we can expect from you guys in calendar 2009 going forward at this point? Can you just maybe give a little bit more color on your expectations for the rest of the year?
Pete Mangan
As we have in the past quarter we are just guiding to a quarter-to-quarter base and so I don’t have any comments for the year. Obviously we are maintaining expenses flat in the quarter and you could probably approximate from there.
John Vinh – Collins Stewart
Once your cost saving initiatives have pretty much run their course we should be thinking about flat through the remainder of the year, or maybe slightly up?
Pete Mangan
In line with the March guidance we are guiding expenses flat. We do have a few other activities but that is the guidance for the quarter.
John Vinh – Collins Stewart
Can you confirm on the revenues that the $5-6 million is that obviously most design decisions have pretty much been locked or set for 2009? Should we be thinking about this as a base revenue run rate that we should be thinking about your revenues going forward until potentially March of 2010 at this point?
Sylvia Summers
We are working on a few opportunities for the second half of 2009 but I think for your model it would be safe to expect this at this time. It may change if we have some good news. I’m starting to be very careful with good news these days.
John Vinh – Collins Stewart
The decline in revenues in the March quarter on a sequential basis, is all of that primarily due to are you losing share at some other customers and it is reflected in the guidance?
Pete Mangan
The color we gave you on the decline was really the majority of it was really driven by December representing the end of the SVB line for us without a lot of tier-1 traction on the SOC’s you get the combination.
Sylvia Summers
You also have the impact of the economic downturn on some volumes for the customers we have.
John Vinh – Collins Stewart
Can you help normalize what you are seeing in terms of typical seasonal declines? I know certainly seasonal declines in the March quarter have been 10-15%. What are you seeing this year if you normalize for the share loss there in terms of seasonal decline?
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