On Thursday, Semtech Corporation (NASDAQ:SMTC) reported its first quarter earnings and discussed the following topics in its earnings conference call. Take a look.
No Plans to Divest
Harsh Kumar – Stephens: Congratulations on closing the deal. Mohan it seems like Gennum is on a run rate of roughly $35 million, $36 million a quarter. Do you anticipate keeping all of that revenue or are there parts and pieces you will shut down, can you just comment on that? And I’ve got a couple of follow-ups.
Mohan Maheswaran – President and CEO: At this point, Harsh, we have no – there’s no thinking about shutting down any of the revenue, any of the product lines. The video business is – looks like it’s very healthy business, lots of opportunities, both in broadcast side on the surveillance side and also some emerging spaces within the broader video market. Then I think on the datacom side, obviously they are a very good fit with what we do both on the physical media devices and also on the CDR devices. So, I think that’s very healthy. The IP division is a very, very talented group of people that now was under the name of Snowbush. Historically, we also have looked at that – the people and the capability there and we believe that that’s going to be a very good asset for the Company going forward also. So, at this point in time there’s no ideas of divesting anything.
Harsh Kumar – Stephens: Then, Mohan, you mentioned that communication is starting to come back. You specifically mentioned that opticals looking a little bit healthier now. I’m wondering if you would give us some color between 40-gig orders that you’re seeing and the 100-gig orders that you’re seeing. In other words, is the one doing better than the other or both coming back?
Mohan Maheswaran – President and CEO: They are both coming back. 100-gig is very small today, so when we see a small pick-up in that, it’s nice to see that growing, but that will continue to grow. Obviously, 40-gig is a little bit larger and little bit more mature than 100-gig. So that’s going to be a little bit more up and down. But in general, I would say, we expect the pool count for both 40-gig and 100-gig to increase on an annual basis and for sure, we’re seeing demand pick up in both 40-gig and 100-gig on a sequential basis here.
Harsh Kumar – Stephens: My last question and I’ll jump back in queue. Are there any intentions of taking any steps to increase the gross margin of Gennum products. I know they are very healthy already, but maybe there are steps. Then secondly, when would you start taking steps on the SG&A side or maybe you could provide us an update of that?
Emeka Chukwu – SVP and CFO: Well, on the SG&A side, we already have started to take some steps. The Gennum management team has largely been reduced there. We have made some significant changes there. We have started to integrate a large portion of the sales infrastructure and are aligning some of the channel elements there. So, I think, that’s progressing quite well. I think on the gross margin side, yeah, I mean, as a company we do that. We don’t look at a product line and say, hey, you have great gross margins and therefore we don’t need to do anything with it. We continue to look at cost. We continue to look at new products in the areas to get higher ASPs and things like that. So, yes, we will continue. I think there is some opportunity obviously clearly with the supply chain integration, there is opportunities to bring down the cost. Some of the philosophies we have in terms of how we attack cost I think we can apply to the Gennum business. So, yeah, we will continue to look at that.
Gabriel Rodriguez – Goldman Sachs: This is (Gabriel Rodriguez) on behalf of Jim. Just a follow-up on the comp space, could you provide some color on trends by geography and any visibility you might have into trends broadly in the second half of the year?
Mohan Maheswaran – President and CEO: So, by geography Asia is starting to pick up and I think Europe also. So, those are the two that where we are seeing the booking strength. Second half of the year, difficult to call but we’re not seeing – our view is that the comm space is starting to pick up quite nicely, specifically in some of the higher bandwidth areas. Clearly, there is a need for more bandwidth, and then I think that’s going to continue to drive some of the infrastructure deployments. So, we have seen a pickup, both on the long haul side and some of the short-reach side as well. So, it’s difficult to call second half. I would say that we’re going into our strongest period here in general Q2 and Q3 for Semtech, are quite strong periods and so my expectation is that (indiscernible) comm both Q2 and Q3 will be quite strong.
Gabriel Rodriguez – Goldman Sachs: Then just as a follow-up, if I may, on the port protection side, some of the data points we’re seeing from the smartphone space have been mixed. What are you hearing from your smartphone customers and how do you expect your smartphone revenue to trend this quarter relative to normal seasonality?
Mohan Maheswaran – President and CEO: I think it is a bit mixed, it’s not as great as one would have liked, as you go into the strongest period of the year, but it is significantly stronger than what we’ve had in the last couple of quarters. So, my expectation is, again, we’ll see, as I mentioned, an uptick in Q2 and then some more uptick in Q3, but perhaps not as much as we would like to see it, and that tells you something about the consumer space in general. I think there’s still a lack of confidence in the macro environment and things like that, but I think it’s going to be okay.