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Submarkets From a Peak Perspective
Ian Ing – Lazard Capital Markets: You talked about five out of the 10 submarkets being up this quarter. Can you talk about which are (indiscernible) least below their prior peak demand and given the guidance are we done with inventory replenishment and restocking at this point?
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Jon Olson – SVP and CFO: I’d say from a peak perspective, Ian, this is Jon. From peak perspective wired is a little bit below the peak in IFM is a little bit below the peak. I think those are a couple that are, I would say, marginally softer, but slightly softer. Then the computing aspect of things has been down a little bit from its peak, but generally others have been up, I’d say. So, wired and wireless down a little bit, I didn’t mention wireless, wireless has been down little bit, because obviously there were some bigger build up when both China and U.S. were growing at the same time. So, Comm down a little bit and then pure industrial down a little bit. Did you have a second part of that question, Ian, I’m sorry I missed that.
Ian Ing – Lazard Capital Markets: Just a sense of, is inventory replenishment and restocking over at this point if there is still…?
Jon Olson – SVP and CFO: Yeah, so I’m going to make some general comments about our posture and positioning here. I think from an economic perspective, we really are seeing – well, we aren’t seeing anything really negative out in the market. Orders have slowed, but yet cancellations and push outs have not increased. My view here is, there isn’t any – there is not significant build-up of inventory in the overall in any of our end markets with some exceptions in the communications segment. There are couple of customers that I think have been procuring inventory a little bit ahead and they are going to work through that in the next quarter or two and I think that’s the only place where we see anything. That really isn’t across the board, that’s just at a couple of selected customers.
Seeing Industrial Caution
Brendan Furlong – Miller Tabak: Just a follow-up on that question. I’m wondering if you could kind of breakout, is it on the wireless or wireline side of this inventory piece, few major customers that you have are building some inventory?
Moshe Gavrielov – President and CEO: It’s wireline primarily. Sometimes it’s hard to tell, because we do ship to some customers that are both wireless and wireline, but it’s a little bit more wireline than it is wired.
Brendan Furlong – Miller Tabak: Then I guess the second question would be on the industrial side, which had, we just rebounded in the March quarter, I guess in the June quarter with some inventory refresh or replenishment through the cycle there. Do you think that’s now kind of a little bit completed or do you think there is any legs left in that part of the business?
Moshe Gavrielov – President and CEO: Actually I think it is completed and I think everyone is being really cautious about ordering. I wanted to emphasize the fact that our lead times are in great shape on a relative basis. So there, my belief is that people are being a lot more cautious about stocking inventory and they know they can get it in a relatively short amount of time. So if I go back to look at some of the other cycles we have gone into – we have seen push-outs and cancellations increase ahead of the revenue drop and we really aren’t seeing that. So, I think, we’ve been, it’s possibly been cautious on our guidance for the coming quarter, but I do think we are going to be going through living through periods of up and down here as people make a decision on whether the (indiscernible) or whether the economy is slowing down or not. Yeah, we still see CapEx spending very strong in the wireless area and even some wired initiatives going on in China. So it doesn’t seem unhealthy to me. It just feels like a lot of caution.
Brendan Furlong – Miller Tabak: I would sneak one last one if I could on the P&L. R&D was supposed to peak, I guess, in the September quarter is that still the expectation and in the back half of the fiscal year we see some decline in the overall OpEx rate?
Jon Olson – SVP and CFO: So, total OpEx, I believe, will still be lower in the second half of our fiscal year than in the first half of the fiscal year. That being said, I think OpEx will move up a little bit from the 220 in the December quarter, but then decline in December. So, we are going to have a little more flat – instead of having a more pronounced peak like – peak it is going to be a little more flat than a decline.
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