Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Tore Svanberg from Thomas Weisel.
Tore Svanberg - Thomas Weisel
(Audio Gap) ?the year with slightly higher backlog. So the sequential decline you’re expecting, is that the result of very recent slowdown in bookings?
Stephen Daly
For the most part, yes. The slowdown actually for Hittite really started to begin in January. When we look at the booking trends for 2008, what we see is Q3 was our best quarter and Q1, Q2 and Q4 were on a relative basis, the same. So from our point of view, the slowdown really began in January and on a monthly basis, we see that it was one of our weakest months in a long time.
Tore Svanberg - Thomas Weisel
Very good and you mentioned three segments that are relatively slowing down more than others. How do you foresee those segments to progress as we move throughout the year? I guess what I’m trying to get to here is, are your customers, do they have excess inventory or do you think this is just a pure slowdown that will continue for the rest of the year?
Stephen Daly
Well, I’m not sure I know the answer to that question regarding, the complete answer. In terms of the three markets that are slowing down the most in the first quarter, test and measurement, I think primarily because companies in our industry are spending less in capital equipment. I think in microwave and millimeter wave industry I think it’s more of an inventory correct. So, we do service eight different markets and each market has a very different dynamic.
Tore Svanberg - Thomas Weisel
Very good and I think you’re going to refine from giving guidance for the year as far as growth segments, but as you enter the year, what do you feel that the company has the biggest momentum out of your eight segments for possible growth in 2009?
Stephen Daly
Well, I think there’s potential in all eight markets, number one, and it’s very early in the year to really try to separate which one’s will grow and which one’s won’t. I think that if I were to establish goal posts, I would say that the space in the military markets will most likely be the strongest and test and measurement most likely be the weakest.
Tore Svanberg - Thomas Weisel
Very good and you said that you’re going to be selectively managing expenses. Can you just elaborate a little on that, because obviously you want to maintain your R&D level and your programs there so, should we assume that lower expenses will be mainly on the SG&A side or will you also potentially cut some R&D?
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