Looking ahead, management expects revenue for the fourth quarter of fiscal 2008 to be in the range of $42 million to $43.2 million, with gross margin expected to be in the range of 36.8% to 37.8%. In addition, the company expects its operating expenses to be between $10.8 million and $11 million. However, weak demand for semiconductors, higher stock option expenses, and the highly competitive market could restrict Pericom's future growth. Natus Medical ( BABY) is a provider of health care products used for the screening, detection, treatment, monitoring and tracking of common medical ailments such as hearing impairment, neurological dysfunction, epilepsy, sleep disorders and newborn jaundice. The company also has products used in newborn metabolic testing. Natus' principal product lines include its ALGO and ABaer screening products for newborn hearing screening, its Echo-Screen OAE device for hearing screening in newborns and hearing monitoring in young children and adults, its Navigator and AuDX products for diagnostic hearing assessment in children and adults, and its neoBLUE LED line of phototherapy devices for the treatment of newborn jaundice. The Ceegraph VISION product line for diagnostic electroencephalograph (EEG) monitoring, the Sleepscan VISION product line for EEG monitoring of sleep disorders and the Neometrics newborn screening data management systems are also key product lines for the company. The company sells its products in over 80 countries. Natus has been rated a buy since June 2007, due to what we believe is a generally positive outlook for the company. For the first quarter of fiscal 2008, Natus reported a 36% revenue increase year over year. The company also reported that its earnings per share improved from 7 cents a year ago to 11 cents in the most recent quarter. Over the same period, net income rose from $1.5 million to $2.6 million. First-quarter results were led by strong sales of the company's newborn hearing screening products. Additionally, the company completed its integration of Excel-Tech ahead of schedule, and recently announced an agreement to acquire Sonamed, a manufacturer of hearing screening products.