Any Technical Marketing Engineer in Silicon Valley can explain much better than "marketing gurus" at Opnext. Incompetent management loves to surround himselft with cronies and henchmen. I am not so sure if OPXT shareholders is pleased at all. What a butt joke. Beancounters at OPNXT are even worse.
Troy Jensen - Piper Jaffray So, they are using it on like a 100 giga links and routers or PTX?
Bob Nobile Ross, you can provide a more technical answer on this.
Ross Saunders Yeah, I mean actually to be honest we don’t know how they are going to take the IP and put it into the product, of course you would assume it is going to be next-generation IP optical platforms. So, really we did a deal there where it’s a good win-win for both parties. That all said, its kind of a market off to the side, we were just really not going after anywhere, so it’s a good win-win, it helped benefit the seller (inaudible).
Troy Jensen - Piper Jaffray Okay. And now if you strip out -- let's strip out supply side issues right now. Can you talk about demand right now that we kind of have the reset issue what are you seeing this throughout this year here on the demand?
Bob Nobile Well, you mentioned it earlier at the start of the discussion here. In a demand, especially on the telecom side has been a bit sluggish through this calendar year. And on our earnings call we discussed we indicated that if we are kind of seeing that what we saw at this quarter kind of pulling towards the December quarter.
Then on, in addition to kind of just the sluggishness resulting from the general slowness and overall economy, you have got the impact that have taken place in China where their growth rates are slowing down.
In addition, they had inventory build up that you refer. So, you kind of have both of those impacts affecting demand, especially if it’s a 14 Gpb and above level from China affecting the last quarter and kind of going into this quarter as well with several of the major Chinese OEMs moving a good chunk of there requirements back to internal.
And many of them OE have always dual-source. They use a is a portion of the requirements were done the internal production and use third quarters like us, and the remainder of their requirement. But what we have seen on the last quarter and into this quarter that they are not significantly utilizing more internal requirements than using third party product.