Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Gary Mobley with Noble Financial Group. You may proceed.
Gary Mobley - Noble Financial Group
I just have first a housekeeping question for Mark. What was the cash flow from operations in the quarter and depreciation?
Mark Voll
Cash flow from operations was $3.6 million. The depreciation for the quarter was approximately $200,000.
Gary Mobley - Noble Financial Group
Hiro, your automotive segment rapid growth rate and I’m sure a lot of that is certain automobiles coming to market and design coming to market. So I’m wonder what we should expect in terms of continued sequential growth out of that business and potentially what it can be at in 2010.
Hiro Kozato
I think we will continue similar run rate, growth rate, into 2010. I think we will achieve somewhere around $20 million next year assuming all the Japanese going into production second half next year.
Gary Mobley - Noble Financial Group
How do you feel about your long-term margin target? You had been running above the target model for some time, that in the face of aggressive pricing on your behalf. So I’m wondering if you now feel a little better about that long-term target.
Mark Voll
We’ve always stated that our target model for growth margin is somewhere between 55-60%. I think for the last couple of years we’ve been able to do a little bit better than that, but I think particularly as the automotive business becomes a more integral part of our mix, we would probably see margins come down slightly and we’d be probably at the higher end of our range of 55-60%.
Operator
Your next question comes from the line of Quinn Bolton with Needham & Co. You may proceed.
Quinn Bolton -Needham & Co.
First off, congratulations on the strong growth in the third quarter and nice guidance for the fourth quarter. Hiro, I’m sorry, I may have missed something in your description of the acquired business in China, but can you just go back and review for us the products that that company was working on? What chips are they specifically working on?
Hiro Kozato
At this moment, we are not disclosing too much details, but said they have developed a very low cost solution for DVRs and also for IP camera market and this product will be a complimentary product for our partners. This will not be a direct comparative to our backend partners; it will be a more complimentary product that will be integrated to our 4-in-1 video decoder.
- To read the full transcript on Seeking Alpha, click here »
