MXL
#Thank you.
You know, I think most ---+ if I look out at where ---+ where this ---+ your colleagues are at and kind of where we have been directionally pointing people we have said that the tax rate will kind of migrates its way up towards 20% as we progress through the year and I don't think anything has really changed off of that you should be getting to an overall ---+ right now based on everything we know of course tax is a difficult noise that's coming out of Washington, but right now nothing is causing us to change our outlook and I would say if you have got a blended tax rate that's in the mid-teens on a non-GAAP basis or ---+ for 2017 I think you're in a pretty good spot.
Really no need to change where you're at.
So, <UNK>, you ask a very, very good question and if you recall even in last year ---+ beginning of last year in the first half I was saying that having seen the patterns ever DOCSIS 3.0 deployment I expect the revenue ramp for DOCSIS 3.1 to happen in the second half of 2017 and it seems that, you know, that's how it's playing out.
Is there risk for the rollout, yes, sure in the sense that, you know, it's not as big as they want it to be at this stage, but it's ---+ in indisputable that by Q4, Q1 the following year is going to be a massive one.
So I think that, you know, it is going to be a ramp in the second half and how it starts in Q3 versus Q4 I cannot speak for.
It will be a big ramp.
And I do expect that there will be ---+ there will be more growth in data subscribers for at least a big player like Comcast and with the ---+ with the way things are playing out you have heard about syndication of the Comcast X1 platform to other cable operators, the uptick in DOCSIS 3.1 will happen much faster because it could spread to multiple operators very rapidly so it could be yet one of the biggest ramps for the DOCSIS platform.
Secondly, you know, the ---+ for us there's an increase in the (inaudible) and as always new standard deploys and we had you had benefit from that.
So we expect growth coming over the DOCSIS 3.1 for sure.
We have been running about $5 million a quarter in stock based comp and a little over $5 million in stock based comp and about $2 million per quarter in the stock based bonus, which I don't think you should assume any real deviations from that.
And then on the share count I think on a fully diluted basis we have been ---+ I think we're modeling around ---+ probably around 69 million shares.
The clear answer is that ---+ I just want to make this kind of clear that, right, a lot of attention to these higher gigabaud 32 gigabaud, 45 gigabaud, 64 gigabaud linear products but really that's a small percentage of the big deployments that are happening in China will be the case for the ---+ because they want cost to be low and for the next two years 100 gigabit NRC is going to be the big ---+ the hugest portion of the deployments.
So having said that, you know, we are launching the TIAs and the ramp of these TIAs is what is going to drive the growth and that will be the second ---+ and I expect the pops to start happening the second half the year sometime.
Now, the ---+ the good thing about TIAs are they tend to be margin rich unlike drivers which tend to be module and but the negative thing about them is they take a longer time to of qualify because people (inaudible) very good ---+ complicated optical alignment issues and then people buy (inaudible) directly into the main boxes.
So ---+ so you have this dichotomy.
The cycles stay on track, the ramps happen in second half and can you get pushed a little bit, yes.
Therefore, I'm being cautious when I give you the range of $25 million to $30 million of guidance for optical revenues for 2017.
And at the OFC, which is in March sometime, we will be announcing a bunch of new products and there will be demos and I think from that point there will be good visibility of all the new products in the linear market that we will be launching which is primarily the 32 gigabaud, 45 gigabaud and 64 gigabaud products but 45 gigabaud and 64 gigabaud products will not generate any meaningful revenue until 2018 or beyond and that is ---+ that is just a fact for the industry.
Yes.
Well, thank you, operator.
And as a reminder we will be participating in the (inaudible) Financial Group's sixth annual Semi Storage and Technology conference on March ninth in New York and the 29th annual Roth conference held March 12 to 15 in (inaudible) in California.
So we hope to see many of you there.
With that being said we thank you all for joining us today and we look forward to reporting on our progress during the next quarter.
This concludes today's conference call.
