Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Quinn Bolton with Needham and Company. Please go ahead.
Quinn Bolton – Needham and Company
Thanks, guys and good job on the numbers. Jeffrey, I was wondering if you could talk a little bit more about your SME outreach program. You talked about 10,000 million targeted accounts. Are there certain attributes that you are looking at to decide whether you are going to target an SME account and are these geographically in the major manufacturing regions from China? Just a little bit more detail about how you intend to go after these new accounts?
Jeffrey Kang
Well, actually as you’re saying – that the current orders of existing customer, I mean, revenue customers that’s customer we generates revenue in every quarter from them. But, in order to expand our business, so we also have a much larger and a targeted customer in our category which means that some new customers. We are pursuing. We are doing the designing work. We are following them, but we haven’t generated revenue from them yet.
So, as you know, as Cogo expanded into the new verticals even in the digital media segment we still have something new segment to target. So usually our first step is to meet to list out who our targeted customers are. Usually the targeted customer [number] would be much larger than our revenue customers. And then using our platform to reach those customers and following their every project to [track] they are doing, and to provide some design solutions to them. And you eventually try to convert those targeted customers to the revenue customer to us. So as we just explained, we currently already have over like 1,300 revenue customers, but at the same time we already have the targeted customers in over like a 10,000 in our CRM database.
So, what are we trying to do is we are pushing our sales force and R&D team to pursuing those small medium sized customers, new customers, new possible customers and then try to follow any new projects which we can help them to get in some of our module solution to get in to. So, that’s what we are doing now.
And basically, this number is a still – our current penetration rate is still below 1% of the SMEs total numbers. So, we feel very confident that it will give us a significant growth opportunity in the next few years by executing of our growth strategy.
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