Question-and-Answer Session
Operator
(Operator's Instructions) Our first question comes from the line of Matt Petkun with D.A. Davidson.
Matt Petkun - D.A. Davidson & Co.
Hi. Good afternoon, guys. On the gross margin mix for next quarter, it sounds like you're seeing more visibility maybe in your mainstream business and less certainty in some of your next generation businesses. Is that fair?
Brian Bronson
Not necessarily fair. I think the mix can change inside our next-gen comms business as such where quarter to quarter we could have gross margin go up or down. So as you probably have heard we had a particularly strong first half with media servers and I expect ATCA to be up sequentially Q2 to Q3.
Matt Petkun - D.A. Davidson & Co.
Okay. And then when we're looking out beyond this year, is there any visibility — not visibility, that's probably not fair, but at what point do we start to see more of a contribution from the potential of a 3G ramp in Asia, in China in particular?
Scott Grout
So I would say we're seeing a little bit of that now. I would expect as we go out at the end of the year this year and into the beginning of next year we have a couple of programs that we should start to see some new and incremental revenues associated with 3G build out. So we're experiencing a little bit of that today through our existing customers, existing programs — we've got a couple of new wins that should be relatively short time to money and start ramping up towards the end of the year, beginning of next year.
Matt Petkun - D.A. Davidson & Co.
Okay. And then one other question as I continue to be impressed —
Scott Grout
I am sorry, one other point. You probably noticed that from a geo standpoint, about 44% of our revenues in the last quarter came from Asia so it's been particularly strong for us.
Matt Petkun - D.A. Davidson & Co.
Right. It looks like that's more Japan related, but that's still very good relative to historic.
Scott Grout
Yeah, it is.
Matt Petkun - D.A. Davidson & Co.
The other question was just a broader and more strategic question and you can answer it however you want to. You guys have done a great job of controlling the OpEx and R&D continues to go down. I'm wondering from a broader perspective where you, in terms of product specifically, where you're going to be funneling incremental R&D dollars? You guys have established a pretty good footprint in advanced ATCA and media server. Is there another area where your customers are seeking help from maybe an outsourced provider of R&D or is there something else you're focusing on or is it just continue to ramp up using your existing IP portfolio?
- To read the full transcript on Seeking Alpha, click here »
