Thank you.
Operator
Your next question comes from the line of Atul Bagga with ThinkEquity. Please proceed.
Atul Bagga – ThinkEquity
Hey guys. Thank you for taking my question. You highlighted a couple of pockets of growth in Q3. You talked about media and entertainment, some parts of emerging markets. When you are looking for fourth quarter guidance, are you baking any contribution from these pockets or are you expecting a decline in these markets as well?
Carl Bass
I mean, we’re trying to factor in the fact that all of these margins may slow down. I would expect it to do it on a relative basis, that some of those pockets are going to continue I believe, and as I said in the prepared remarks, I think the emerging economies are absolutely going to continue to grow. We’ve all seen the announced slow-downs in terms of the GDP growth in places like China and the Middle East but they are still growing and as Sue pointed out, in many of those places we are under-represented in that those that represent new opportunities for us.
I think we saw a strong 3D growth. You know, we’ve talked about 3D growth over the years. That’s about our products being compelling for people getting to new technology. There’s still an aspect of -- you know, people, just like we do when we talk about retooling during this downturn to be more competitive as we come out of it, our customers are doing the same thing and so they are looking for high-valued tools, they are looking for high productivity tools which we provide. And so you are seeing a lot of people move to 3D tools and as a matter of fact -- and when I answered the previous question, we didn’t see a move to 2D. People are regressing, people recognize the need to go to more high performance tools and I expect the 3D to continue to be relatively strong.
Atul Bagga – ThinkEquity
So in terms of the conservatism that you bake into your guidance, would you say that fourth quarter guidance, you have been more conservative than you have been in the previous guidance?
Carl Bass
You know, rather than characterize conservatism, what I would really say is, we believe it’s a much more volatile environment to which we usually give guidance. We have tried to -- you know, we’ve widened the range. Usually we look out and we can look out quarters and have a high degree of accuracy. We have already seen volatility, enormous volatility in the past. There’s large fluctuations in currency that are going on and every day brings with it new news, and so at this point in time what I would say is we certainly see a very volatile environment and an unpredictable environment, rather than saying it’s conservative guidance.
Operator
Just a reminder, if you want please limit yourself to one question. Your next question comes from the line of Daniel Cummins with Lime Rock Research. Please proceed.
Daniel Cummins – Lime Rock Research
Thanks. Can you hear me?
Carl Bass
Yes.
Daniel Cummins – Lime Rock Research
Oh okay. I’m thinking back to the analyst day, maybe the past few years where Al had that slide that had the 45-degree line and it kind of represented your week-over-week linearity or performance against that line and I’m curious whether the guidance for the January quarter, does that reflect the week-over-week performance recently? So I’m thinking like the last three to four to five weeks, are you sticking closer to that line moving through time here, or are you getting a little bit further apart? Really, are things really worsening week over week or not right now? |