Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of John Harmon with Needham & Co.
John Harmon - Needham & Co.
Hi, good morning.
Harry Bosco
Good morning, John.
John Harmon - Needham & Co.
So, I’m sure everyone’s wondering how StrataLight performed in the quarter? What was StrataLight’s revenues or was it inline with the other 40G businesses and looking at your revenue guidance, what are your expectations for StrataLight versus core Opnext?
Robert Nobile
The revenues for StrataLight for the quarter ended December were approximately $24 million John, and the guidance that we’ve discussed encompasses both the Opnext and the StrataLight business.
John Harmon - Needham & Co.
Okay. Well, second question then. Maybe you could just contrast the performance of your telecom businesses and the outlook as well as versus of your datacom businesses.
Harry Bosco
Yes John, we saw an impact in our datacom business and it continues while the telecom business took a downturn and has kind of leveled off, but that’s a near time impact. In the future we expect the telecom business could slow down based on some of the Cap Ex discussions out there today and datacom business should start to level off and hopefully as the IT infrastructure starts to come back up again, we’ll see that grow again.
John Harmon - Needham & Co.
Okay. Thank you.
Operator
Your next question comes from the line of Dan Morris with Oppenheimer.
Dan Morris – Oppenheimer
Good morning. Just wondering if you could stand a little bit on the pricing environment and was the pressure pretty much across the board or are there product areas you can highlight as especially hard hit?
Robert Nobile
Pricing pressure Dan is really across the board. I think you’ll see it a little bit higher in products like tuneables and some of the ex-10G products.
Harry Bosco
Yes, a lot of this pricing impact we expect it just in normal course of business. We have seen some areas where it’s taking a little more aggressive positions.
Dan Morris – Oppenheimer
Okay, and as you look out through 2009, do you have any assumptions or expectations for ASP declines that you could quantify?
Harry Bosco
We said in the past it’s on an average of about...
Robert Nobile
Yes, they’ve been about 15% year-over-year declines, say over the last two years or so. I think we’re seeing that slightly increasing at this point in time and it’s not a straight linear change quarter-over-quarter. There is always a higher percentage that takes place going from the December quarter to the March quarter due to year-end price contract negotiations.
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