Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) We’ll go first to John Vinh, Collins Stewart.
John Vinh – Collins Stewart
Hi, good afternoon. Thanks for taking my questions. The first question I had was relative to your full year guidance, how do we think about seasonality in the back half of the year? Can you maybe just talk about June quarter seasonality? And are you potentially seeing a little bit more seasonality circuit revenues for the second half to be a little bit more backend loaded? Thank you.
Kevin Yeaman
Well, first of all, the first thing I would say when we look at our second half of the year is the predominant dynamic in our thinking in formulating the second half guidance is the effects of the economy. The second half of the year will reflect spending after the holiday quarter. So it will be on large in June quarters. It will be reflected in the second half of our year. And those were the quarters that we think have been affected most by the economy.
As it relates to seasonality, it really depends on the market. There are markets like the consumer electronics market, which tend to be very influenced by seasonality. There are markets like broadcast where the primary driver for us is the increasing attach rate to televisions and increasing amount of technologies in the televisions in Europe with Dolby Digital Plus and HE AAC being adopted. And so seasonality doesn’t tend to be as much of a factor because we are more driven by the attach rate than the unit shipments.
So when you net it all out, we see for the second half, we see gaming and PC being down on lower unit volumes. We see CE being down year-over-year on lower shipments of standard def DVD. It will be partially offset by Blu-ray shipments, especially because we had some delays in reporting. It will benefit us in the second half. And then we still expect to see growth in broadcast and mobile, and that’s all about higher attach rates.
John Vinh – Collins Stewart
And then so far a question on broadcast, you talked about kind of the opportunities in Europe. Couple of questions related to that. One is on Dolby Digital Plus and HE AAC, can you talk about how we should be thinking about the ASPs on Dolby Digital Plus versus Dolby Picture [ph]? Are you getting your premium there? And in situations where you have markets where you are adopting both HE AAC and Dolby Digital Plus, are you getting essentially close to kind of 2X ASPs there? Maybe just help us think about that. And then I’d add on to that is, how do we think about kind of the adoption curve in Europe of Dolby Digital Plus and HE AAC? You talked about kind of less than 20% in tax rate existing last year. Do we think about that going to kind of 50% by the end of fiscal ’09? Thank you.
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