Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Steven O’Brien - J.P. Morgan.
Steven O’Brien - J.P. Morgan
Can I ask first on the broadband data results and the revenue recognition this quarter; we understand there’s a bit of one-quarter impact here coming from customer acceptance; when you look out to the third quarter and fourth quarter, how should we consider? Does this category go back to a run rate that is similar to the Q1/Q4 levels? If you could just help quantify, what sort of a normalized level would have been without this customer acceptance? And then, on the same topic, you’ve talked about some broadband data category wins in China, what hit the numbers this quarter, are those wins still coming through the numbers?
Timothy J. Wiggins
Steve, I’ll take the first part of your question and Rob will handle the second part; so, on the data revenue, couple of things, certainly we did see some significant increase in the quarter, if you look at the sequential increase from $63 million to $107 million that was largely a result of these acceptances. If we exclude the acceptances and look at the business first half of this year to any of the first halves since we’ve been in the data business, it was still a record, so we saw solid improvement. If we think about the business in the second half, we expect to see continued growth, we’ve seen strong demand in orders; so, what we’re seeing here is that some longer terms projects where we’ve been shipping products for a number of periods, and as of course you know, there are many periods where you are shipping product, where you’re not able to recognize a revenue; other periods, particularly in cases like this where you get an acceptance but it tends to be a bit lumpy, but what we’re seeing is solid demand, we’re seeing record performance both with and without the revenue recognition and we see strong second half.
Robert W. Pullen
Like we were talking about earlier, we saw our corporate book to bill greater than 1 reinforcing some of that. Steve, for the second part of your question which is the impact of China, China actually also positively impacted our quarter, but the data revenue growth and the broadband revenue growth that Tim and I talked about was on a global basis; we had demand from all four regions of the world, whether it’s Asia, Latin America, North America, or Europe, the Middle East, and Africa and the two customer acceptances were actually in the Asia area and Latin American area, but it was not in China, it was in our Asia-Pacific region and separately in our Latin American region.
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