Jean HuIt’s about the same, but it’s overall microeconomic. It continues to be uncertain and weak, so it’s… Simon Biddiscombe I think specifically to us, I think coming into the year, we had an expectation around the launch of next-generation service based on next-generation processes from Intel much of which occurred in the June quarter. We thought we might see a bump in the activity levels in our business associated with those launches. I think as we sit here today it clearly there hasn’t been a bump of such and some of our major market partners have actually seen year-over-year declines in the business. So the other think we were looking for was growth that we did attribute to the next-generation service that really have at this point in time. It doesn’t mean it couldn’t play the remainder of year, just haven’t seen yet, okay. Unidentified Analyst And this might be a tougher question to answer, because I think you might shift to one location, but I can get your product and get deployed and your installation get deployed anywhere right I mean, but just in terms of geographies, do you have any sense or should we put that when side, we don’t really have visibility into… Jean Hu Yeah, we don’t right, because it’s a very much centric model where we shift to not necessarily with – and the destination will be. Unidentified Analyst Okay. So, last question centers on cash and what we’re trying to do is give a sense for company’s preference for cash usage. So, if there is four buckets of M&A, dividend, buyback or just keep the cash on the balance sheet Can you rank order your preferences there? Jean Hu Definitely the first one, we continue to try to look for investment opportunities on M&A side. But you got to have the discipline to do the right investment, and so for QLogic, if you look at our priority, we have been doing the buyback. So, buyback certainly is our rank of number one.
Unidentified AnalystYeah. Okay, and then M&A, second? Jean Hu M&A, we always looking for it, but it’s very uncertain, right. You never know if you can find the right opportunity and so far for us that we have been buy the lot of shares. Unidentified Analyst Okay, all right. So, on recent earnings call, I think you mentioned when the economies have a negative impact on service sales and therefore demand for HPAs, but hopefully this is the shorter-term dynamic, and maybe we can just talk about and talk about that a little bit. But can we talk a little bit about the longer-term outlook for Fibre Channel expense? So, I don’t think that anybody really calls out Fibre Channels as a particular growth market. Simon Biddiscombe Yeah. Unidentified Analyst But I think increasingly the fear that the raise in big data will cause a dramatic roll off in Fibre Channel. What are your thoughts around that? Is there a glide past that that we can negotiate our way through here? Simon Biddiscombe So I think – so let’s talk about the near-term dynamics, okay. So we’ve spend an extraordinary amount of time scratching our heads on how much of what we’re seeing at this point in time is attributable to macro and attributable to differences and related to market. So, traditional OEMs versus new OEMs were emerging in Taiwan and China. “And how much of it is a secular decline in the Fibre Channel market?” Okay, so I think a lot of what we’ve seen to-date, we are attributed into macro and specifically to macro and areas where some of the highest rates of Fibre Channel activity were such as financial services, such as government, okay. So, the markets where Fibre Channel has historically enjoyed the greatest revenue streams have been some those that have been through the most difficulty from the macro perspective over the course of the last few quarter. So, we’ve been able to isolate what we believe is the part of the decline in the market is attributable to macro. Read the rest of this transcript for free on seekingalpha.com