Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from JoAnne Feeney – FTN Midwest.
JoAnne Feeney – FTN Midwest
I wanted to perhaps delve a little bit more in to the graphics side of things, I’m wondering if your exposure to the ATI and Nvidia product lines is still relatively balanced? You mentioned finding your way on to more mainstream cards, is that true for both of those product lines or just for one or the other?
Jeffrey Staszak
Well, we’re still pursuing opportunities with both in mainstream. We have won some design wins at one of these customers and expect those to launch the second half of this year, end of Q3 or early Q4.
JoAnne Feeney – FTN Midwest
Do you see that ramp continuing in to Q4 Jeff or is that something that’s going to have a strong surge right here now in advance of the launch and then sort of tails off pretty quickly?
Jeffrey Staszak
No, we would expect it in Q4 and then we would see kind of a tailing off in the Q1 time frame.
JoAnne Feeney – FTN Midwest
Then, on the notebook side, you were clear about it being flat here for this quarter because you think the ramp is over, do you then see that the back to school build that sort of queues things up in May and June, that that is over and we’re not going to see another surge of builds for notebooks for holiday season, is that your take on things right now?
Jeffrey Staszak
Well, we do have some consumer I guess but that’s not the majority of the notebooks that we’re in, most of them are more business related.
JoAnne Feeney – FTN Midwest
So you feel like those builds have already taken place and that’s not going to get any further boost in the second half from consumer spending.
Jeffrey Staszak
No, like I said this quarter in Q3 we expect it flattish to slightly up and then we would expect assuming the Calpella launches mid Q1 of 2010, we would expect like historically we would start to get orders in the December time frame for the Calpella launch so we could see some small incremental uptick in Q4.
Operator
Your next question comes from Rick Schafer – Oppenheimer & Co.
Rick Schafer – Oppenheimer & Co.
I just had a couple of questions, just a follow up on the GPU, or sort of a follow up on the GP question, I was kind of surprised to see even with GPU becoming a bigger piece of the mix in the third quarter, it sounds like a materially bigger piece, that you’re going to be able to hold gross margins basically flat excluding those onetime benefits from Q2. Can you give us an idea of how you’re able to do that? Is that reflecting sort of the Gen 6 ramp in the back half?
- To read the full transcript on Seeking Alpha, click here »
