UEIC
#Comcast was ---+ they were at 26.6% of sales.
There was.
DirecTV was also a 10% customer.
They were at 13.7%.
I'd add ---+ I'd probably put low to mid-20s.
Right now the R&D tax credit hasn't passed yet so the tax rate runs little higher than (inaudible) finalized it last year.
Well, we communicate with them daily, so it's something that we our salespeople they work with their team in terms of their purchasing departments.
So we are in constant contact with them.
And from our understanding they are going to ship in Q4.
So I think our confidence level is high in that regard.
The one thing Steve, set-top boxes are much more complex than in the past.
So the fact that these customers delayed shipment by month or two isn't ---+ we don't like it but I can't say it's a complete surprise when you're dealing with the ---+ they used to be old analog boxes and now you've got two-way RF, you've got IP connections, you've got voice control.
They are much more complex.
So again we are not happy a got delayed a little bit but in the grand scheme of things from a long-term perspective it's very minor.
Well, I'm not willing to give you the exact figure or guidance for next year but what I'll say is this.
As we said in the prepared remarks that the platforms that are being put into your home today our IP connected or cloud connected so they are connected to the Internet.
They all have built-in two-way RF capabilities.
So this architecture makes a perfect host for these other products, these other services door sensors, window sensors.
You know protection against fire and other types of safety and security products potentially home control products.
All the protocol necessary to bring such services will already be in place.
And basically justified on the back of the video business.
So anyway, these platforms are out there.
We see this is a big opportunity.
It's important to note as we did in the prepared remarks, we're not talking about a market that doesn't currently exist and that we hope will develop.
The market for these products, these home safety and security products is already $1 billion almost $1.5 billion a year and it's projected to more than double over the next four years probably on the basis of some of the smart platforms that are coming out.
Our customers have been talking to us about this for some time.
They obviously realize that the architecture they have put in place will lead to a small incremental investment necessary to bring this type of service revenue to them.
We've talked to current industry players in the home safety and security business and we have some unique innovative product that we think can make a real difference there.
So we do think that we have ---+ we can carve out a real good market position in this new market which is about $1.5 billion going to almost $3 billion.
So that would tell you how big this could potentially be.
Do your market share statistics, take 10% of that market and you've got a very large number.
No, those doors have already been knocked on and we already have projects that are ready.
Well, not ready for deployment yet but are in development for deployment early next year.
It would have, yes.
Yes, I want to say I think Q4's revenue guidance is light.
It's where I think it's going to ---+ where we are going to be.
We think it's going to be between and $159 million and $167 million, which amounts to 15% to 20% growth over the prior year.
So we expect strong growth for all the reasons that we mentioned in the prepared remarks but it's what ---+ it's the range I think were going to fall within.
Sure, I would say that particularly for these advanced platforms the two-way or cloud connected boxes with two-way protocol, that is probably clustered mostly in North America and Western Europe but I would say it's either in development, being ready to be introduced and in a couple of cases will be introduced or has been introduced in the near term.
So this is not something that is isolated to just two players.
We've counted almost 2 dozen now that are again at various stages of development on this type of platform.
So this is becoming a trend or a movement rather than just an isolated incident.
We think that you know the world is changing in the area of home entertainment and so, we're pretty excited about this.
We're going to see some platforms launch in Q4 but we have many more beyond that that we see happening next year and probably the year after that.
Well, OEM is going strong.
On that you'll see some things that will change early next year mainly because they are on typically on an annual product cycle so TVs, AV receivers and other OEM type consumer electronics devices are typically designed once a year.
They are being designed now through this past summer through the end of this year to be introduced early next year.
So, you'll see changes and we'll talk more about that as next year progresses.
The platform for this year though are already designed.
So there won't be an impetus this year other than the sale of products that we are currently in.
No, no, I said the royalties were lower in Q3 of 2015 versus last Q3.
They've actually gone down.
Yes, it's just we had some product introductions so we had some strong ---+ we had a surge in licensing revenue for a while.
We sell into the TV market and some of our customers have lost a little bit of market share.
So it's resulted in an adverse effect on our royalty revenue but we've been able to compensate for it.
And with the transition of the lower end platform to the higher end platform, which is really driving the growth rate now for us.
And we have a much more diverse list of customers this year than ever before, so there's a higher count of customers.
Unfortunately though compared to last year there were two major programs that were relatively new.
One which was brand-new with a major name that has diminished.
So that's what caused royalty to come down a little bit Q3.
This was not a surprise though.
This is really what caused any difference but we knew that before the quarter started.
I believe they were, Steve.
I'd have to go back and look to see exactly what it was.
But I think they were in the low teens but I'd have to go back and double check.
Okay, thank you all for joining us today and for your continued interest in UEI.
Coming up early next year as always we'll be exhibiting at the consumer electronics show or otherwise known as CES in Las Vegas from January 6 through the 9.
And we'll be participating in the Needham 18th annual growth conference in New York health the next week January 12 through the 14.
Hope to see some or all of you there.
Thanks very much, goodbye.
