Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of James Schneider - Goldman Sachs.
James Schneider - Goldman Sachs
To start off, could we talk a little bit about where you are in terms of shipping to end consumption; you’ve talked about the overreaction of the supply chain to the negative side. Do you think you’re back to shipping to end consumption levels at this point and are there any product areas where you’re still under shipping and consumption?
Dr. Sehat Sutardja
In terms of the end consumptions, we do not have the right visibility to the end consumers, but a lot of our customers are pushing us for rebalancing the inventories. So, that’s clear. So, that’s why we’re also cautious about whether the improvement in economy is real or it is rocky or it is semi-rocky, but we’re optimistic that many of our new products on the other hand are also built in into some of the new products. So, overall we’re optimistic.
James Schneider - Goldman Sachs
On the cellular business, could you give us a sense of what revenue run rate you need to be at to reach operating break-even for that business and how far away that might be?
Dr. Sehat Sutardja
I don’t think we gave those numbers, but you should expect that in every new business that we do, we will eventually reach profitability, but because the cellphone is a huge investment. That point probably is a little bit further ahead in front of us. Even if we wanted to give you the number, we don’t have those numbers anyway. It could be another couple of years before that happens.
Operator
Your next question comes from the line of Randy Abrams - Credit Suisse.
Randy Abrams - Credit Suisse
I was wondering if you can provide an update just on timing and initial segments in the collection point for some of the new hard drive projects you have in the quarter, Seagate and Hitachi.
Jeff Palmer
I think we’ve said it’s probably around calendar 2010 and that’s the best visibility we have right now.
Randy Abrams - Credit Suisse
If I could ask, last year you had a bit of an early read-in to deceleration where back to school was okay, but then going into holidays things decelerated. It looks like you’re building inventory a bit in July and I guess some of that support current quarter increase, but to what extent are some of the early order indications in inventory levels suggest saying continued improvement into the back half of the year or do you see that for one quarter snap back?
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