Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Sue – RBC Capital Markets.
Mark Sue – RBC Capital Markets
I’m still trying to understand why the actual results were different than those projected. Was there a longer evaluation cycle with your customers in the US? Was it a broad based weakness in North America cable or was it just Comcast? And, did you recover some of the deals that had slipped in to this current quarter?
Robin N. Dickson
Mark, our guidance for the quarter was $82 to $88 million and we are comfortably in that range, admittedly slightly below the midpoint but we’re comfortably in that range. So, I think from a revenue perspective if it was any surprise it was perhaps the strength of the international business which was very encouraging and admittedly some relative weakness of the domestic customers.
Mark Sue – RBC Capital Markets
If I take $4 million from the high end of your guidance can I say $2 million was due to North America being down sequentially and another $2 million related to supply chain? Is that kind of how we can look at it?
Robin N. Dickson
As I said in the prepared remarks we don’t really believe that we missed any shipments as a result of supply chain problems. It certainly caused us some additional costs which are reflected in the gross margins but from a revenue perspective I don’t want to give the impression that we saw that as a limitation on the top line. I think you’re right to observe that domestic sales were as I said, relatively a little bit weaker than we expected but commensurate with that, international sales were I think on the other hand a little bit stronger than we expected.
Mark Sue – RBC Capital Markets
Then by all accounts the macro seems to be better in North America, cable cap ex seems to be healthy. Is there something going on from a technology shift point of view? Are they looking at other options when it comes to deployments? Any color there on North American cable would be helpful.
Patrick J. Harshman
We’re not seeing any meaningful change in the technology or competitive landscape in cable. We believe that our technology and competitive position is as strong as ever. The response to our newest products has been quite positive and we’re quite confident we have not lost any market share and in some instances we believe we’ve gained market share. I think we’re still in the middle of the reporting season and there’s a number of customers coming at this market with exposure to the US cable market but at least from what little I’ve seen is that we’re somewhat unique that our third quarter revenue was up and I don’t think people are pointing to and I have not seen any indication of a tremendous strength in US cable in general in this third quarter. We feel that we still have just seen somewhat cautious spending from US cable operators.
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