Arnab Chanda (Deutsche Bank): Your gross margin is going up from first quarter to fourth quarter. How much of it is due to mix and how much is from the TSMC transaction?
Dr. Sehat Sutardja: It is across the board because we have been focused on improving deals across the board. In some of the new products we are focusing on features that take us in right future direction. We want to minimize on bloated designs and improve on testing.
George A. de Urioste: Our internal process has evolved where we now have heightened sensitivity for the review process.
Arnab Chanda (Deutsche Bank): When should we expect the eventual production related to the Phase III plan?
Dr. Sehat Sutardja: In 2009.
Arnab Chanda (Deutsche Bank): On the Ethernet side, it seems your main customer Intel is on the PC side gaining market share against competition. Is that going to be a benefit for you this year?
Dr. Sehat Sutardja: Our numbers reflect the expected benefit.
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