Question-and-Answer Session
Operator
(Operator instructions) Our first question will come from Rajesh Ghai with ThinkEquity.
Rajesh Ghai – ThinkEquity
Yes, thanks. Congrats on the strong quarter. So looking at the guidance, you mentioned the ESP business was witnessing some inventory destocking and you thought it was going to be flat to up. Then you said that the HSP business also seemed to be stabilizing, and given that you're closest competitor have guided to 0.3% [ph] upside on the HBA business. And I'm just wondering why the 1% guide up in terms of revenue for this quarter. It seems very conservative. Can you just comment on what do you see out there that makes you so conservative?
Mike Rockenbach
This is Mike. Let me start and then maybe Jim and Jeff can add in. I don't think we are being overly conservative on that. You know the midpoint of our guidance is up 1% for the total company. We guided up to $82 million at the high end. I think within our business as within our competitor's, it's not all just HBAs. One other things we talked about in our script was we did have a pretty strong quarter in ASIC IOCs, which are in there as well. So there is a few different pieces in there when you look at it on a sequential basis. As you think, we see and feel pretty good about the HBA market. But historically, the summer has been one of the slower quarters with December quarter being stronger. So I think certainly from where we are at in the quarter we feel pretty good. The comments from our customers on their calls, ones that have answered have also been – I think with a little bit more positive tone. But I think it's – the quarter is still not over yet. So –
Jim McCluney
I think we feel confident in the ranges that we are giving you. And obviously our intent is to execute against those ranges.
Rajesh Ghai – ThinkEquity
Okay, great. Turning towards something that Jeff mentioned about pent-up demand in the server market, server OEMs have, specifically IBM, has started messaging the benefits of a server refresh to its customers. And obviously with the introduction of the Nehalem chip and the upcoming server – Windows Server upgrade cycle and averages of service being three years, it appears there is a server refresh cycle around the corner. Have you gotten any sense from your OEM customers as to – they've started – begun preparing for this pent-up demand of this upcoming server refresh cycle or is it too early to say? And if you have any sense of timing when it could occur, when it could begin, that would be great.
- To read the full transcript on Seeking Alpha, click here »
