Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Our first question comes from the line of Sterling Auty. Please state your company followed by your question.
Sterling Auty - JP Morgan
Yes, JP Morgan. Hi guys.
Fred Amoroso
Hi, Sterling.
Sterling Auty - JP Morgan
Good. So a couple questions. I want to be clear; so you said the CE industry saw 6% declines in the fourth quarter. You talked about flat CE revenue for 2009. What have you kind of embedded into those forecasts for your business as it relates to what you think the industry does versus maybe some new design wins to get you to flat for the year?
Fred Amoroso
Sterling, I’m going to turn this over to James, but before I do that I just want to highlight one thing about market trends versus where we are. So assuming if we were a fully embedded and fully developed within the market on our CE guides or CE patent license, we would generally hit market trends. Please realize that obviously this is a new and very growing market for us, so on year-over-year comparisons, it doesn’t have a direct correlation to market trends, but to answer your question James.
James Budge
Yes, you heard the market trends right, is for the relationships we currently have, figure we knock off about 10 points from there and go down about negative 10% in 2009. That’s offset by growth from new customers we expect to get throughout the year that brings it back up to about flat for the year.
Sterling Auty - JP Morgan
Okay and then to a different topic on the expenses. You talked about the synergies are done, but expenses are supposed to decline through the year. Just highlight for us again what are the specific expenses you’ve taken out, that would cause a decline? How much of it is headcount, how much facilities, how much is other expenses that come out of the model through the year?
James Budge
Okay, it’s mostly related to outside legal costs. We’re putting a lot of energy into some offensive execution of sales activities that we expect to turn into revenue throughout the year and those costs will subside in the second half. It doesn’t have anything to do with synergies; on an overall basis we probably expect to spend about that for any annual basis. We’re just putting more of it in the first half of the year as compared to the second half. As far as synergies are done, we are definitely done.
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