I would now like to talk about operational developments in more detail.

We are pleased to see continued strength in our smart card business and milder ASP erosion. As we previously indicated we believe the degree of decline in ASP in year 2010 will be within 10% compared with 2009. A significant portion of new orders for smart cards is coming from third and fourth tier cities in China, which have been buying large volumes of smart cards over the past two quarters, bringing total smart card shipment growth in the first nine months of 2010 to 57% year-over-year.

We have been making exciting progress on a number of fronts over the last quarter…

First, our integrated chip product for set-top boxes, which we commercialized in the second quarter, began generating revenue in the third quarter. Given the encouraging customer feedback we've received, we believe this product should make a meaningful contribution to revenue over the next few quarters.

We also made some progress with our overseas business, signing a contract with an operator in Myanmar in the third quarter. In 2011, we will continue to seek opportunities in emerging markets including Latin America, South East Asia, Central Asia and Eastern Europe.

Furthermore, at a recent exhibition, we launched our self-developed Pro DRM product that supports interactive TV applications on IPTV and two-way digital cable platforms. The new product is now undergoing testing by a national operator and will be ready for use in commercial projects in the coming quarters. This progress demonstrates China Digital TV’s ongoing efforts to leverage our unique position in the industry to expand our product line and meet operators’ needs in the post-digitalization era.

I will now hand the call over to Eric Yuan, our head of investor relations to discuss our financial management.

Eric Yuan

Thank you, Mr. Li. Hello everyone.

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