Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Sam Wilson – JMP Securities.
Sam Wilson – JMP Securities
I have sort of a number of one off questions I hope you’ll forgive me for a few minutes here. First, on carriers and enterprise it looks like quarter-to-quarter they were down the most versus NEMs and I’m wondering here if you’re the NEMs continue to invest throughout this downturn on next generation products and you’re benefitting a little bit from that versus the carriers and enterprises which are pulling in? Or, do you think this is just a lumpiness in the business? I just want to get a sense for what you think is going on among your individual customer segments?
Atul Bhatnagar
NEMs definitely are continuing to invest in the next generation platform. I think we see that across the board because we all know as the markets come back the density and speed increases will be a new number not the legacy platform so we do see that investment continuing. On the carrier front, really in some ways there is some lumpiness because the projects tend to be lumpy. Enterprise for us is again, I don’t see a significant trend right now which tells us very definitively. I think a couple of quarters in a row will give us an idea.
So, on the carrier front there are many projects which we still have in the funnel that we’re working on so I don’t think there’s a specific trend as such I could point to right now. But, NEMs you’re right we are seeing that the next generation products, they’re still buying the right solution to make sure they are there as the markets turn around.
Sam Wilson – JMP Securities
A second question, in the past Nortel’s been a top five customer. I’m wondering if you have any exposure vis-à-vis Nortel’s bankruptcy right now?
Thomas B. Miller
Very minimal. We have right around $100,000 in accounts receivable. Fortunately for us in that respect Nortel’s purchases have been low the last couple of quarters. They were very large in Q1 but the purchase levels came down during the year.
Sam Wilson – JMP Securities
I know there’s sort of a reorganization, are they continuing to buy from you on a cash basis now or is it effectively down to zero?
Thomas B. Miller
Right now there’s not a whole lot of activity going on with them and when we start seeing orders we’ll assess how we want to be paid for that.
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