Tier 1 Budgets
Sanjiv Wadhwani – Stifel Nicolaus: Tom, just a broad level question on Tier 1 budgets, are you getting the sense that given sort of a weakness in the first half that budgets are still unchanged for the full year or essentially have been sort of ratcheted down for the full year?
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Thomas R. Stanton – CEO and Chairman: Well, you know I hate to speak for the customer base and my sense is that they’re still in the sense that there’ll be some accelerated spending in the second half I think is what the verbiage is, but that’s something that we’re not planning on ourselves. So, we’re assuming that the environment is kind of what the environment is, and that the spending levels at most of the carriers will stay consistent to what we saw in the first half.
Sanjiv Wadhwani – Stifel Nicolaus: Did you see normal sort of sequential uptick into the second quarter or was it way below the normal seasonality just in terms of given that first quarter was (the way) I am just trying to gauge as to where the second quarter essentially came out you think in terms of spending?
Thomas R. Stanton – CEO and Chairman: It was actually somewhat lumpy. I mean, actually we came out of the quarter – the previous quarter and we saw pretty good order flow and that stayed consistent for some part of the first month and then we saw a slowdown and then we saw a pick back up in the end of the quarters. So, it definitely was not a normal seasonal quarter for us. I can look at different market segments and talk about different pieces. I have touched on some of those in my notes. Definitely the Tier1s, other than the Fiber to the Node build-up that I mentioned, was slower than what we normally see. We saw some project delays in the Tier 2 accounts. Now, those project delays right now are scheduled for just later in the year including the third quarter but our take on that is they have been fluid enough for us at this point in time just to discount that potential start and just see kind of how things roll out through the third quarter and the fourth quarter.
Sanjiv Wadhwani – Stifel Nicolaus: Just one quick question, Jim. As far as NSN is concerned if you look at the two months that you had in the June quarter are we still looking at run rate of about 36 million or so for the September quarter?
James E. Matthews – SVP, Finance and CFO, Treasurer and Secretary: We do expect a sequential increase in revenues from Q2 to Q3 for BBA. Just by the – but in terms of giving specific guidance on the revenue level for Q3 for BBA at this point I don’t think we’re prepared to do that, other than saying that we do expect to see sequential increase.
James E. Matthews – SVP, Finance and CFO, Treasurer and Secretary: I think maybe a better way look at and there is pressure that we’re seeing in Europe but to be honest, we have nothing like what we’re seeing here. So, I think uncertainty around BBA has to do the fact that we’re three months into it – two and a half months into it I guess. So, the way that we’re looking at that and trying to be as cautious as we can, is basically to say let’s take two months and add another month to it and that’s kind of the range that we’re looking at.
Jim Suva – Citi: First a clarification question then my main question? The clarification was to make sure did I hear correctly you’re expecting Q3 guidance in total company to be flat and that even includes I believe an additional full month of NSN acquisition? My actual question after that clarification is the gross margins it look like core ADTRAN before the acquisition continued to deteriorate here for the gross margins when you don’t include the acquisition integration. Can you talk to us a little bit about that and why margin should be flat going forward when one would expect you’d start to see some synergies improvements from NSN and is this kind of new permanent reset to the ADTRAN model for margins?
Thomas R. Stanton – CEO and Chairman: Let me cover the first one and I’ll touch on the second one and then turn it over to Jim. The answer to your question is the total Company including the acquisitions NSN BBA business we’re expecting flat to slightly up in the Q3 period. So that would include all of the revenues for the three months in Q3 with NSN. On the second piece we have too much now of NSN margins and the margins on the NSN business came in basically in line with what we had projected and what we had talked about. And if you blend those two margins we’re within the range of that it is that we thought was going to happen for the total Company. We had some one-off expenses mainly a warranty expense that was in excess of $1 million that we occurred in Q2 which is not something that is typical for us and that did impact slightly. Jim you want to add some?
James E. Matthews – SVP, Finance and CFO, Treasurer and Secretary: Right, and as we look at Q3 in terms of the BBA business, we do expect to see some cost improvements in the cost of sales are or some gross margin improvements. However, the flipside of that is that we will see a full three months of BBA at lower than our organic business. So, there’s that to consider as well in our view of the Q3 gross margins.
Thomas R. Stanton – CEO and Chairman: So, if you look at Q2 to Q3 organic I would say there were no surprises there and I would say Q2 gross margin were in line with what we had said and Jim if you mind just kind of restating what our gross margin outlook was for BBA, the target?
James E. Matthews – SVP, Finance and CFO, Treasurer and Secretary: Well, as we said on prior calls we expect the BBA gross margin to start out in the low 30s and then as we progress through the quarters we expect to see improvements and actually we said in the last call that we expect to see full savings of our supply chain transition in Q1 of next year. So, that has not changed and we expect that gross margins on BBA will improve between now and then to reach that point