Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Aaron Rakers with Stiffel Nicholas.
Aaron Rakers - Stiffel Nicholas
I guess the first is with regards to guidance. If we could take the midpoint of the guidance or basically the guidance ranks that you have given up 2% to 5%. If I strip out last year, it looks like their normal seasonal trend was somewhere in the high-single digit to 10% sequential range. So, first of all, can you help us connect the [Inaudible], given your positive commentary, relative to what looks to be a bit below seasonal type, sequential guidance for this December quarter.
Simon Biddiscombe
Sir Aaron, this is Simon and I will answer that one first, I think you said you had two questions, but the actual range is broader than you suggested that the range is 2% of the low end to the 6.5% of the high-end right? The 140 represents 6.5% growth over the number that we just posted.
There is no doubt that as we look at the trends within the business at this point in time, when we look back into the September quarter, when we look at the October quarter, the month of October activity to date and then when you look at the forecast that we receive in for the remainder of the December quarter, that things continue to improve, we remain cautious and frankly we remain conservative as it relates to the outlook, primarily because we have been through a tough year, like many other companies and we are going to be cautious and conservative as it relates to where we are today and the guidance we provide versus what you correctly pointed out as typically our strongest seasonal quarter than we suggested.
Aaron Rakers – Stifel Nicolaus & Company, Inc.
Okay. The second question relates to the 8-gig product cycle that you guys are seeing. If my memory serves me right, you have actually seen still benefit from an ASP perspective from 8-gig over 4-gig so maybe the update there on that, as well as, is there a gross margin benefit at all that you are seeing from the 8-gig cycle in your host product division?
Simon Biddiscombe
It does continue to be some premium associated with the 8-gig products over previous generations of the products today, that is somewhere around 10% to 15%. From the gross margin perspective on the percentage basis they are very consistent with the host products. So, 8-gig is very consistent with the other host products.
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