International Rectifier Earnings Call Nuggets: December Outlook and Target Model
Alex Gauna – JMP Securities: Congratulations on the progress getting back to profitability. Oleg, I know you mentioned you expected better seasonal results in the second half of the year. Can you kind of characterize, I know you are not guiding, but characterize what you would consider a normal December and maybe some color behind what you think might be better than normal seasonality in that quarter?
Oleg Khaykin – President and CEO: Well, thanks Alex. Well, there is a couple of things. You know when I look at all of this information, it’s a bit like reading tea leaves here, look at multiple data points and derive what the outlook might be. The first one I would say is if we look at our POS sales today, they are moving very briskly into the channel. Also, looking at some of our direct customers who are already playing for December, we do not detect any type of major slowdown activities as we saw last year at this time during the year. And also, we are not seeing a major de-booking that we observed at the same time of last year as the December quarter is being shaping up. So, taking into account that you have brisk POS sales, fairly lean channel inventories, no significant notice of decline in production planned for December, at least as far as we are seeing at this point in time, it leads us to believe that December quarter will be a lot healthier than we observed in the last three years. But also, on top of it I would add is because we are seeing so much caution in restocking inventory and we expect even inventories in the channel to decrease further by the end of the quarter. Just a fundamental healthier December quarter may result in a lot of expediting and last minute order placement in the September quarter.
Alex Gauna – JMP Securities: So, Oleg if I understand you correctly, the further inventory (leading us) in the channel that you would expect would get you to the point where you could benefit from expediting? Where are you with your internal inventory levels? Are they where you want them now or do those need to – are you expect them to come down a little further?
Oleg Khaykin – President and CEO: We are getting very close to levels where we would want them to be. I mean, given that – depending on the product your replacement cycle is anywhere between eight to 12 weeks and what we are seeing now is some of the products are already – we are noticing some of the products already seeing their lead times expanding as demand picks up. And one of the things we are is there is hesitancy on part of the channel to place the orders, and then once they get the order from their customers it’s a scramble, which lead us to believe – and also looking into the channel inventory there’s just not much (slack) available there…