Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Daniel Morris with Oppenheimer.
Daniel Morris - Oppenheimer & Company
Hi guys, thanks for taking my question. Just turning over guidance, essentially you have the same guidance as last quarter, with a relatively wide range, could you just talk about if, can we refer from that that there really hasn't been much change in the backlog or the order balance or anything like that?
Gilles Bouchard
Well, Dan, first as you know, the lot of our revenue is driven by VMI and other programs. So, the backlog is not the only way (ph) that we have, we look at lot of customers forecasts and overall demand. Well, I think as I indicated, what we see is requiring some market segments form the lows of last quarter, but only in modest growth looking forward. In addition, as I mentioned that the 40G subsystem business is quite lumpy in nature, so have to be cautious in terms of the quarter-to-quarter variations.
If you remember, in last quarter we give the indication that this would be about a $30 million average business for the rest of the year. It came out above this quarter. But, yet we have to assume that it's going to be between the trend of plus or minus 10 to 15% because of the lumpiness nature of share deployments.
Daniel Morris - Oppenheimer & Company
Okay. So, I guess, if we look at 40G specifically then since we got a little bit higher run rate in this past quarter, we are expecting 40G that kick-off maybe a little bit in the next quarter?
Gilles Bouchard
I can't really predict exactly what it's going to be. Again, it's just intrinsically being very lumpy; the fact that it's 33.2 this quarter doesn't mean it's going to 33.2 next quarter. It's going to vary again plus or minus 10 to 15% quarter-over-quarter on this 30% run rate, that we think represent the current market.
Daniel Morris - Oppenheimer & Company
Okay, but the range is somewhere between 30 and 35 you think for the next couple of quarters?
Gilles Bouchard
For the total 40G business or just for the subsystem business?
Daniel Morris - Oppenheimer & Company
For 40G.
Gilles Bouchard
40G, yes, there would be the 30 for subsystem, plus three to five to six for the module business, so that could be the range to look at it as a midpoint.
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