On the Product front, we introduced and ramped into production, several new devices across our product lines. In our TV/Panel Product Line: We ramped our 5th generation Advanced Video Processor, the PA136, into high-volume production. The PA136 provides industry leading video quality, and incorporates a number of advanced features, such as real-time static and motion based 2D-to-3D conversion and Pixelworks’ innovative n2m technology which ensures smooth playback of low frame-rate Internet video. In the third quarter, we sampled the PA138, which includes all the improvements and features of the 136, but is targeted for advanced high end systems and support for the latest generation high speed panel interface. Our momentum in the Tier 1 segment of the Advanced TV market continued in the third quarter, as we penetrated another Top 5/Tier 1 TV OEM for our PA series products and these programs will begin shipping in production in the fourth quarter. Our penetration of the Top Tier customer base, confirms Pixelworks’ leading position in providing innovative solutions in video processing to this market. These customers are selecting Pixelwork’s products because, we provide superior video quality and innovative value added features at a competitive price/performance point, combined with the ability to deliver product in high volume to the highest quality standards.
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