Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Vernon Essi - Needham & Company
Vernon Essi - Needham & Company
Some good results here and great guidance, I wanted to dive into some of the comments you made about the energy side and just on a, just so we understand from a go forward basis, were you [inaudible] the flatness in the market as an overall commentary or just the seismic side of things.
Jason Rhode
No, overall the traditional business that we’ve been in in the energy space we expect that that’s fairly well bottomed out, we don’t see it recovering in a rapid fashion but we don’t think its going to continue to decline at this point either.
Vernon Essi - Needham & Company
One of your larger peers today discussed a lot of robustness in the industrial area and wondering if there is any disconnect to be thought of there. I know you are heavily skewed towards the seismic area but any color on some of the end markets that might help us understand that disconnect.
Jason Rhode
Well yes, our industrial business is a fairly diverse collection of pretty specific businesses so seismic is one. We have a communications product line that is pretty long in the tooth that is in that segment as well for example, the line of ARM processors was pretty heavily industrial focused. That’s in that product line as well.
So it’s a little bit, it’s a significant impact from market issues but its also a collection of product lines that we’re not heavily investing in at the moment either.
Vernon Essi - Needham & Company
And then we should obviously expect the proportions to, that is a percent of sales to rise later this year and early next as your PFC solutions start to hit the ground and ship I suppose.
Jason Rhode
On a percent basis whether it can keep up with audio in the short-term I’m not sure but certainly we do expect good results from the PFC stuff. That has gotten a very positive reception from everybody we’ve shown it to. Its been, that’s a fun situation as a marketing person to be out talking to customers and showing them a product like this and really have them, you really get a strong sense that this hits a strong need in the market. So its cool.
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