DSPG
#Thanks <UNK>.
So, our visibility, and when I translate visibility, I typically translate it to the order book that we have.
So, our visibility hasn't really changed.
It's actually in the range of six to eight weeks ahead.
So that today, unfortunately, doesn't really cover much on the first half.
But our expectation, and based on the designs that we have in the bag, both in Voice-over-IP as well as in the first design win in mobile, which is in production, and also expectation for additional wins to start ramping next year, does position us well first of all for full-year revenue growth next year.
It's too early to provide any more color.
It is true that, in the first quarter, there is a tougher comp, but I would say that, right now, it would be premature to kind of discuss and give kind of further color on kind of the first-quarter revenues.
But you can sense that we are feeling upbeat about our ability to grow in a significant way next year as we will have two growth engines working and contributing in a more significant way.
And this ---+ we believe that the net growth in these businesses will be well in excess of any decline that will come in cordless.
And as we have indicated, there also is a chance that we will see the market, the DECT market, being stronger in the first half of the year, just as a replenishment cycle will take place.
And still it's very hard to say that this will happen, but we are expecting to see some kind of seasonal shift as a result of the environment, the soft environment, that we are seeing right now.
We do expect on a number of launches in Q1, Q2.
This is kind of the period of the home gateway launches.
So I would say like mostly Q2 but also starting in Q1.
So, I think it should be, from an operating perspective, it should be in line or even better than the third quarter.
So the third quarter was $1.8 million, so for the fourth quarter, we should expect something which is in line or better.
I don't have the number of the fourth quarter of 2014 in front of me, so give me a second.
No, I think it would be hard to reach that level, but we should be better than the third quarter of this year.
Although, overall, for the year, we should be with operating cash flow that is either in line or better than the EBITDA, better than ---+ something between operating income and EBITDA.
$0.4 million.
So, R&D is slightly higher in Q4 that it is in Q3, so R&D, if you take the midpoint, excluding the equity-based compensation, so the midpoint should be something around $8.5 million, $8.6 million, which is about $0.5 million higher, or $400,000 higher, than the third quarter.
SG&A should remain the same.
Yes, sure.
So you need to understand that, first of all, we are the beneficiaries, but we are the beneficiaries also because we have a very dedicated focus on this market, and we bring to this market a lot of IP from the telephony side.
And of course, the backwind that we've enjoyed because of the deemphasis increased our chances to be a winner and to become the new leader in this domain.
Now, when we think about the way this market works, we need to understand that this market is a much more conservative market in which new products come to design once in every three or sometimes even longer than that, so three years or longer.
And so in a way, the cycle is ---+ we're just at the beginning of the cycle.
So we still have a lot more product conversions to do and to grab more new designs that will convert from an existing incumbent silicon to ours.
So, there is still a lot of work ahead of us vis-a-vis the programs and products that today are still running on another vendor's silicon that we are hopeful will be converted and run on our DVF series.
Again, <UNK>, too early to provide any concrete guidance on mobile.
But it really depends on the way the seasonal pattern will work and the design wins that we will secure and that hopefully will be in production next year.
It's a possibility, but it's kind of too early to say whether a $5 million type of quarter is in the cards or not.
So I believe it is definitely possible, so I don't think it's remote, but we are just too early to tell exactly where and how revenues are going to shape up next year.
I would say both.
Again, we know that the volume, major high running volume is really on the phone side.
Wearables, smart watches are starting to grow and become a real market.
Probably next year, they will exceed 100 million units for the year.
But we expect both to happen, so both on the wearables side as well as on the smart phone side.
So, typically, when we are talking about Always-On Voice functionality in which the phone is always ---+ so the microphone is always in listening mode, so the phone is basically always kind of opening a microphone and a processor to process any type of sound that it gets on the environment, that of course entails the need for very low power consumption and to see no real impact on the user experience on the battery life.
And that usually will entail kind of the second part of your question so that it will be a discrete type of silicon rather than an application processor, which has significant leakage and it cannot really support with very low power given it is a high-performance type of a processor.
So it would typically be a discrete solution, and then we will be competing with companies that are sitting on that side of the market.
So kind of mixed-signal guys, dedicated Always-On and these type of vendors.
Thanks <UNK>.
Thank you all for participating and we look forward to reporting again in 90 days.
Thank you.
