Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will take our first question from Ralph Schackart with William Blair
Ralph Schackart - William Blair
Hi, good afternoon. A couple of questions if I could? First Kevin as it relates to the PC market you are going kind of fast, I apologize, but one of the follow-up on what you said about the ISP’s, have you seen any significant shift in the attach rates or the Guerilla and CyberLink part of the business.
Kevin Yeaman
What I referred to Ralph was as it relates to our reduction in guidance, one of the factors is that you may recall that on our last call we said that we expected ISP attach rate to notebooks to approach the attach rates we see on notebooks by the end of this fiscal year. While we still take that ISP players will increasingly attach to notebooks. We lowered our expectations for what that rate will climb to by the end this fiscal year, and to further answer your question, no we have not seen a deterioration in the attach rate to notebooks.
Ralph Schackart - William Blair
Great and than as it relates to just the broader PC markets of the ISV overall. Have you seen any big shifts there aside from any notebook implications?
Kevin Yeaman
No. As it relates to the ISV’s our assumptions outside of the attach rate to netbook are largely unchanged or where they are unchanged. And the other factor that effected our guidance in the PC market were are the PC time where we, you might remember we were initially assuming unit growth of just [10% or 5%] for the year, we are now including in our guidance range of anywhere from a positive 2% to minus 6%.
Keep in mind of course that those are fiscal year numbers, so you need to do the math when comparing them if you are looking at calendar year numbers this includes a pretty strong Q1.
And the other factor was that you may have noticed that Microsoft reported a decline in its premium mix of products. Now a large reason for that they cited was the netbook, we of course had already factored that out, so our original guidance assumed that we get paid on any Vista with netbook nor do we assume it going forward. But they also said that part of the premium mix was due to product and geography mix, which could affect us. And so we factored that into our guidance particularly on the low end of DC because of that uncertainty specially since Microsoft didn’t give any guidance.
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