Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question and answer session. (Operator instructions) And our first question comes from the line of Brian White with Collins Stewart. Please go ahead.
Brian White – Collins Stewart
Okay. Hi. Jeffrey maybe you could a little bit about the Mega Smart deal, what does it mean to revenue, how big is it over the next two months, give us an idea of what you think in terms of accretion and really maybe what it does for Cogo, the three items?
Jeffrey Kang
Well, thanks very much Brian. As we noted in our press release, we signed stock purchase agreements with – in the second quarter and we are – this deal has broadened our products offering, especially in electric grid area and which we will significantly increase our revenue from the industrial segment. And we expect – and this deal we expect to close in the second quarter. That is why we expect because it is an accretive deal immediately, so we expect the revenue contribution since the second half of this year. So we expect in the next like after deal closing and 12 months, we expect the revenue range from anywhere from 15 million to $25 million in revenue contribution and we certainly believe it is from a strategical value or from immediately number contribution, it will all give us a very positive impact to us. And more importantly we're going to use this deal, integrating Mega Smart team, and we're going to change the Mega Smart Company's name to Comtech Industrial, that will significantly increase our business exposure to the initial business.
Brian White – Collins Stewart
Okay. So for the June quarter Jeffrey when do we think it is going to close in the June quarter?
Jeffrey Kang
I think you know we certainly are going to close before June quarter end.
Brian White – Collins Stewart
Okay. So there is no revenue contribution in your outlook for Mega's margin in the June quarter?
Jeffrey Kang
In our guidance number, yes, you are – we didn't include any Mega Smart deal.
Brian White – Collins Stewart
Okay. And Jeffrey just the smart meter opportunity that it is what mega Smart is about, if you can just really go over maybe examples of the types of product, how big is the opportunity, and how quickly is this going to ramp, how quickly is Cogo going to get involved with smart meters and scientific products?
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