Jim Flaws: There has been no change in terms of our day sales outstanding what we ask our customers to pay on recently.
Jeff Evanson (Sanford Bernstein): As you look at the strength of the A-brand as you call them that’s promoting much more rapid growth in SCPs and in Taiwan say, how that your B-brands might respond and what that would mean for you all?
Wendell Weeks: One of the hardest things for us to predict is what we call regional mix that you usually plays out around this A-brand versus B-brand dialogue. What we believe is that the A-brands will continue to be strong this year and that the B-brands will have to follow and therefore you will get some recovery there as well.
Ajit Pai (Thomas Weisel Partners): On the telecom side, is there any change in the pricing environment?
Jim Flaws: There is no issue with Concord on fiber – fibers going terrifically. The margin issues are really occurring in our cable systems of business and we are going to move to raise prices and are notifying our customers there but it is really more of a cost base issue and mix issue within cable systems.
Andrew Abrams (Avian Securities): Have you seen any change in your manufacturing cost structure?
Jim Flaws: We are seeing cost increases in materials, principally resins and life sciences and the products that go into a cable systems either hardware or armory in the cable. They are not material enough that we know, it’s changing our results for the corporation obviously on top of it more to raise prices there.
Energy tends to be as a percentage of our cost, to be below 10%, so it has not been a significant item for us, yet but we are obviously paying attention to it. We do not have not it show up on our primary raw material which is sand and clay, although certainly transportation costs have factored in that.
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