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Haptic feedback enables keys on the keyboard, a virtual keyboard, you actually feel yourself pushing buttons and keys. You can create cool effects in games, you probably experienced that in the gaming space for many, many years, scrolling, swiping, textures, tension, all of these things engage a sense of touch.In medical simulation, this is how doctors practice on a digital patient, but they use their sense of touch to feel a [cogdaughtary] or navigating through small tubes into to find tumors and so on. And so, haptic is something that is important in the user experience and one in which emerging in the digital world enables. We operate as I said in large and growing markets and so these are few of the focused verticals that we operate in, mobile phones is the largest over 1.5 billion phones sold each year. Here is where you’re adding haptics to game play, GUI interfaces, texting, typing input. Automotive, another large market where driver distraction is the key impediment a problem, so you want to be able to provide as much information whether it’s touching a screen, rotating a rotary knob or navigating a touch surface, all haptic enhancements and also large market. Consumer markets, commercial markets gaming space, whether it’s gaming peripherals or gaming on mobile devices or handheld devices, and medical simulation surgery. So, again, these are all very large markets, all essentially benefiting from the migration of touchscreens to each of these areas and wherever you have touchscreen you have an opportunity for an engaging experience with emerging haptic technology. These are the touchscreen deployments in the different markets. With that mobile as you can see is the blue category and the largest but the green also includes many other markets as well. So the growth in touchscreen is phenomenal and we are experiencing right now and we have a significant opportunity wherever there is a touchscreen is a need for emerging haptic technology.
Just focusing alone on touchscreen and mobile devices, you can see here we are penetrating in the 20% to 30% right now, obviously a lot of room for growth in the MOTIV mobility space and another markets. In 2010, we were in about 112 million phones, I believe in 2011 we’ll be in somewhere in the neighborhood about a 150 plus million phones.Looking at our licensing model, you can see here the primary revenue for us is the royalty and licensing, we are about 88% year-to-date from this space, these are our partners, who ship products and pay us per unit royalties. In addition, we have a small amount of product sales, mostly components and kits for development purposes, as well as one medical product about 8% and then the balance is from non-recurring engineering. If you look at the revenue from a vertical standpoint, the largest vertical for us is mobility, about almost half of our revenue comes from the mobility space, 30% comes from gaming, 15% from the medical and automotive is about 5%. These are the customers, as well as our partners, so if you along the left hand side, you see our five primary verticals and you see our licensees in each of these verticals. In the mobility space, primarily Samsung, LG, Nokia, happy to say that at CES this week Pantech announced to launch a new tablet using our high-definition solution. On the gaming set of space we work with Logitech, Microsoft and Sony. In the automotive space we work directly with Automotive OEMs, as well as the tier suppliers. In the medical space, robotic controls, medical simulation systems from people like MAKO, Laerdal CAE. And then lastly, commercial and consumer products sold by Samsung, Best Buy, Toshiba and host of other customers. If you look on the right hand side, these are our partners and as a small licensing company of about a 100 people as I mentioned, we work closely with semiconductor companies to utilize our technology, they put our technology on to their touch controller chips and they sell those chips and pay us royalties, and they include Texas Instrument's, Cypress, Atmel. Read the rest of this transcript for free on seekingalpha.com