芯源系統 (MPWR) 2012 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Incorporated Q1 2012 earnings conference call. (Operator Instructions) As a reminder, today's conference call is being recorded. Now, I would like to turn the conference over to your host, Meera Rao.

Thank you. Good afternoon and welcome to the first quarter 2012 Monolithic Power Systems conference call. Michael Hsing, CEO and Founder of MPS is with me on today's call.

In the course of today's conference call we will make forward looking statements and projections that involve risks and uncertainties. These statements will cover a number of areas concerning our business outlook including our business and financial outlook for the second quarter of 2012; our expectations for second quarter litigation, stock based compensation, and GAAP and non-GAAP operating expense; projected second quarter revenues and gross margins; our target operating ranges of gross margins and inventory; our expectations for revenue growth and gross margins beyond Q2 2012; our expected average tax rate for 2012; our belief regarding the outcome of a pending IRS audit; our belief that MPS is well positioned for future growth; the expected seasonality of our business; our expectations for future cost reductions and new product introductions; potential customer acceptance of our products and opportunities these present; and the prospects of diversification and expanding our market share.

Forward-looking statements are not historical facts or guarantees of future performance or events and are based on current expectations, estimates, beliefs, assumptions, goals and objectives and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed or implied by these statements. Risks, uncertainties and other factors that could cause actual results to differ are identified in our SEC filings, including but not limited to a Form 10-K filed on March 12, 2012, which is accessible through our website, www.monolithicpower.com.

MPS assumes no obligation update the information provided on today's call. We will be discussing operating expense, net income and earnings on both a GAAP and non-GAAP basis. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitution for, or superior to, measures of financial performance prepared in accordance with GAAP. A table that outlines the reconciliation between the non-GAAP financial measures to GAAP financial measures is included in our earnings release which we have filed with the SEC. I would direct our investors to the Q1 2011, Q4 2011, and Q1 2012 releases, as well as to the reconciling tables that are posted on our website. I'd also like to remind you that today's conference call is being webcast live over the internet and will be available for replay on our website for one year along with the earnings release filed with the SEC earlier today.

We would like to start this call by reviewing our first quarter highlights. Following this update we will discuss our operating results. We will conclude by discussing our expectations for the second fiscal quarter of 2012. We will then open up the call to your questions.

Let's start with the highlights. MPS had a stellar first quarter with revenues of $50.5 million. This is a record first quarter for MPS. It represents a 6.4% increase from the previous quarter instead of the typical seasonal drop of 5% to 10%. MPS saw strong demand fueled by our new design wins and market share gains in the communications, computing, and industrial markets. The engineering and marketing initiatives that we have been executing for over a year continue to pay off and are driving further product innovation and design wins. MPS's unique technology capabilities, product innovations, and market focus has increased our served available market.

Some of the more exciting developments are, in the networking, server and storage space, for the first time MPS has been approved by Intel as a qualified vendor for their core power. The MPS Intelli-Phase offering for the upcoming VR12.5 [Granti] platform is one of the few monolithic recourse solutions on the approved vendor list. We provide unmatched performance in efficiency, size and cost. Additionally, this has opened the door to work on future reference designs using our other Monolithic high power density product offerings. We introduced our first digital Intelli-Phase product in our Digiphase family of products, targeted at server and net applications.

For the SSD and HDD markets we're sampling a new generation of DC/DC products based on BCD3 technology. We improved the product features and efficiency while reducing the cost and size. Some of these products have built-in features requested by leading storage companies.

In the industrial and automotive markets, we have increased our industrial application base to include the solar power market. Our automotive product portfolio has expanded with additional ACQ100 product offerings. We have another white goods design win in Europe. This was due to the low power green energy capability of a high voltage DC/DC product. In lighting and AC/DC markets, we have scored multiple design wins for our flicker-free white LED dimming product and have started ramping production. MPS is sampling a new generation of low power AC/DC products called the Easy Power family. These products simplify designs and save space for high volume low power applications. Finally, in high volume consumer markets, a new generation of DC/DC products, the Cool Power family, continue to gain traction and increase market share in the legacy high volume BCD plus market.

Turning to the financial summary. We had record first quarter revenues. Strong turns business boosted net sales to $50.5 million above the high end of our guidance range. Revenues from industrial markets grew sharply in the first quarter by 37% over the prior quarter and 90% over the same quarter a year ago. Such quarter gross margin was 52.3% compared to gross margin of 52.5% in the prior quarter, and up from 50.2% in the same quarter a year ago. Bottom line, non-GAAP net income was $6.1 million, or $0.17 per fully diluted share.

Moving to the profit and loss statement. In the first quarter of 2012, net sales were $50.5 million. Q1 revenues increased $3 million, or 6.4% from the prior quarter, and we're $6 million, or 13.5% higher compared to the first quarter of the prior year. Looking at our revenue by end markets, revenues from communications, industrial and computing markets grew both in dollars and as a percentage of total revenues. Sales breakdown as a percentage of total revenues by market was as follows; Communications was 25% of revenues, an increase from 23% and 22% in the fourth quarter and first quarter of 2011. Computing represented 19% of revenues, an increase from 18% in the prior quarter and 13% in the first quarter of 2011. Industrial revenues totalled 9% of revenues, an increase from 7% and 6% in the fourth quarter and first quarter of 2011. Consumer sales represented 47% of revenues and decreased from 52% in the prior quarter, and 60% in Q1 2011.

Communication market revenues grew to $12.5 million in the first quarter of 2012, from $11.1 million in the fourth quarter of 2011, and $9.9 million in the same quarter a year ago. Sales to Gateway Systems drove the increase in the communication market. The largest end markets in the communication space for MPS are Gateways, networking, and Telecom. Computing market revenues were $9.4 million in Q1 2012, increasing from $8.4 million in the prior quarter and $5.6 million in Q1 2011. Strong growth in storage sales contributed to the increase in computing revenues. The largest end markets for MPS in the computing space are storage, notebooks, tablets and printers.

First quarter industrial and automotive revenues were $4.7 million compared to $3.5 million in the prior quarter and $2.5 million recorded in the first quarter of 2011. Industrial and automotive sales growth was fueled by industrial AMR meters, lighting, security, and automotive applications. The largest end markets in the industrial and automotive space for MPS are meters, automotive, lighting, and security. Consumer sales were $23.9 million in the first quarter of 2012, compared to $24.5 million in the fourth quarter, and $26.5 million in Q1 2011. The decline was attributed to lower TV sales, however, set-top box revenues continue to hold strong and grow. The largest end markets for MPS in the consumer space are set-top boxes, TVs, monitors, handsets, and other general purpose consumer markets.

Let's move down to the gross margin line. Our first quarter gross margin was 52.3% compared to gross margin of 52.5% in the prior quarter. The slight gross margin fluctuation is tied to product mix change. First quarter gross margin is up from the 50.2% in the same quarter a year ago, largely due to higher absorption of in-house manufacturing overhead on higher revenues in Q1 2012.

Let's review our non-GAAP operating expense. Excluding stock compensation, our non-GAAP operating expenses for the first quarter of 2012 were $20 million, up $500,000 from the $19.5 million dollars we spent in the fourth quarter of 2011. First quarter non-GAAP R&D and SG&A spending increased $1.3 million from the prior quarter mainly due to higher expenses related to sales and marketing hires, commissions on higher sales and higher audit and tax expenses. This increase was partially offset by about $800,000 lower litigation expenses in the first quarter which included the benefit from the first payment received of $300,000 under a settlement and license agreement of $2 million.

Non-GAAP operating expenses for Q1 2012 were up $2.5 million from the $17.5 million we spent in the first quarter of 2011. The increase year-over-year was primarily driven by higher R&D spending in support of new product initiatives. Sales and marketing hires, commissions on higher sales, and partially offset by lower litigation expenses. Our non-GAAP operating margin was 12.9% in the first quarter of 2012, compared with 11.6% in the prior quarter, and 11% in the first quarter of 2011.

Moving on to our reported expenses and operating margins, our GAAP operating expenses were $23.2 million in the first quarter, compared to $22.5 million in the prior quarter, and $20.4 million in the same quarter a year ago. Since the only difference between non-GAAP operating expenses and GAAP operating expenses for these quarters is stock compensation expense, let's look at the stock compensation expense. The stock compensation expense was $3.2 million in the first quarter, compared to $3 million in the prior quarter, and $2.9 million in Q1 2011. Our GAAP operating profit was 6.3% in the first quarter of 2012, compared to a GAAP operating profit of 5.1% in the prior quarter.

Switching to the bottom line. On a GAAP basis our Q1 2012 net income was $3 million or $0.08 per fully diluted share. On a non-GAAP basis, our Q1 2012 net income was $6.1 million, or $0.17 per fully diluted share. This result is computed with an estimated tax rate of 7.5%. Fully diluted shares increased by 1.3 million shares from the 34.4 million shares in the prior quarter to 35.7 million shares in the first quarter of 2012. The increase of fully diluted shares was largely driven by the increase in the average quarterly share price from [$12.52 in Q4 2011, to $17.53 in Q1 2012]. The increase in fully diluted shares was also due to refresh grant awarded in the quarter.

Now let's look at the balance sheet. Cash, cash equivalents, and investments were $194.6 million at the end of the first quarter 2012, up from $187.9 million at the end of 2011, and $193.3 million we had on the books at the end of the first quarter 2011. In Q1, MPS had operating cash flow of about $8.5 million and cash proceeds of $4.1 million from option exercises by employees and employees stock plan purchases. We spent $5.9 million on headquarter building improvements, capital equipment, and software in the first quarter. Accounts receivable ended the first quarter at $19.9 million, compared with $15.1 million at the end of the prior quarter, and $17.6 million at the end of the first quarter of 2011. The increase in accounts receivable from Q4 2011 was largely due to the timing of revenues in the two quarters.

Days of sales outstanding were 36 days both in Q1 2012 and Q1 2011, and 29 days in Q4 2011. [Our] inventories at the end of the first quarter were $21.5 million, or about 81 days of inventory on a historical basis which is lower than our inventory model of 100 days to 110 days. This compares with $20.1 million or 81 days of inventory at the end of 2011. Inventory in our distribution channels stayed that at about the same level as the prior quarter, both in dollars and days, and total days of distributor inventory was in the target range of 30 days to 45 days.

Let's turn to a discussion of general business conditions. Inventory in the channel continues to be lean. Auto momentum that started in December continues. Design wins and market share gains continue to contribute to revenue growth.

I would now like to turn to outlook for the second quarter of 2012. Our revenue guidance is in the range of $56 million to $60 million for the second quarter of 2012. We expect gross margin to be in the range of 52.5% to 54%. We expect stock-based compensation expense in the range of $4 million to $4.5 million. In 2012 we implemented pay for performance equity compensation program for our key employees. As a result, we are required under the accounting rules to assess the probability of fitting the performance metrics on a quarterly basis. This will add volatility to stock comp, compared to the typical straight line approach associated with time based grants. We expect non-GAAP R&D and SG&A expense to be in the range of $20.5 million to $21.5 million. This estimate excludes the stock compensation estimate mentioned above. We expect litigation expense in the range of $100,000 to $300,000.

In conclusion, in 2012 we will further extend our technology leadership, expand the product road map, and gain market share and targeted high value growth markets. This will set MPS on track for sustainable growth in 2013 and beyond.

I will now open the microphone for questions.

Thank you. (Operator Instructions) Vernon Essi, Needham & Company.

I was wondering if you could go over your, I guess for my purposes, just your capacity that's available out there? And can you give us a rundown of sort of who you're using to ramp your production, and what sort of availability you have? I mean, you're on a nice trajectory here. And I guess, also, just in line with that you had given us an update on your BCD, rollouts from BCD3 or BCD3 PLus into BCD4. If you can go over there and how that progression is taking place that would be appreciated. Thanks.

Okay. We don't have a capacity now and we disclosed the last earnings call we add another foundry with much more advanced equipment. And with the BCD3 product we shrinked it, as we said, we shrinked it by a huge amount, more than 30%, 40% -- more than 30%, 40% of die size. Our, even our existing foundry we couldn't fill it up because [minimal wafer] were dramatically reduced. So we don't have any capacity constraint, and all the other technologies, the BCD3 product, the third generation, down in the converting phase. In BCD4, the fourth generation we are trying to release at the end of the year.

Okay, so you're still qualifying BCD3 -- I'm sorry -- BCD4 with your customers. You're in production, obviously, of BCD3, and I realize that of course your die size is smaller, but I guess my question is the technology -- you had brought in another foundry partner, I remember that. And what I guess I'm asking is how is the capacity with that partner, and do you feel that that equipment (multiple speakers).

Oh, yes, that would add another more than $100 million.

We have more than enough capacity for the foreseeable future.

Okay. I'll move on, then. Congrats on the V-core situation there at Grantley. And I just, obviously you had talked about this a long time ago and now that you're in a reference design scenario, can you give us an understanding of how that revenue would ramp and sort of when you would start to see the first opportunity to recognize revenue on that?

This was -- we disclosed that information on Grantley because it is a milestone for MPS. And MPS is always on the analog side. We don't have a digital. Now we have a digital capability. And it took MPS more than a year to do that. And that's a milestone. In terms of revenue, This -- Grantley is really 2014 volume, so now we are engaged with our customers and, therefore, are designing process now.

Okay. And then in my final question, just if you could explain the consumer side you sort of migrated away from that and you still had a very strong quarter in consumer, especially on a sequential basis relative to your peers. Can you discuss -- you put a lot of things in that bucket there, and even some handset revenue. Can you discuss sort of what seems to be the strongest driver in that bucket and why it is not seeing a seasonally slower downtick?

We had, we had told you last quarter that we have got gain a lot of market share in set-top boxes, so we saw stronger revenues from set-top box in the quarter, and we also saw stronger demand from a whole lot of general (inaudible) consumer products. And I think a lot of it is the new design wins and some of the market share that we have been gaining in this market.

Okay. And so if we go through the rest of 2012, especially as you get into the back half of the year, you obviously would expect consumer to tick up as a percentage of your revenue going into the back half of the year. In other words, it would certainly be well north of 50%, perhaps approaching 50% again, as you exit the year? Is that a fair statement?

We expected to have a percentage. We expected in the remainder same level or slightly lower, and as a market segment picking up. But the revenue dollar is -- will have a modest growth in consumer area.

Okay. That explains it. Thanks. Nice results.

Thank you.

Thank you. Ross Seymore, Deutsche Bank.

On the gross margin line, given just our stereotypical assumption on mix and what would be good and bad for your gross margin, I'm a little surprised at where the growth came from that the gross margin actually was down a little bit sequentially. Can you just clarify to us how we should think about mix? Whether it's by new products or by end markets?

In the second quarter?

First quarter.

Okay. First quarter mix, product mix came in lower, it is a combination of products and customers, and it is largely because of consumer and a little bit of a low-end computing as well.

But going forward-- (multiple speakers).

Pardon?

Go ahead.

By low end computing I'm talking about laptop, notebooks, et cetera.

So if we think going forward, as Michael just answered to the previous question about consumers a percentage of the mix, if comms and industrial become a bigger part of the mix, I assume those are the richest gross margin areas? Much like your peers? Is that how the mix related dynamic works in your business model as well?

Yes, that is true, but the industrial, the revenues and the contribution of a gross margin from industrial is a rather small for MPS at this time, because overall industrial revenue is not as big. And more in the communications and the computing, in the -- from a new, especially from a new generation of product for the computing area.

Then I guess as a, to follow up on that gross margin line as well, if I remember correctly, you had underutilization charges and so you got upwards of $60 million or $61 million in revenue. Away from the mix side of things just from a fixed cost coverage perspective, can you just walk us through if that is still the bogey on where those underutilization charges disappear? And if so, how should we judge the magnitude of what they were in the first quarter and how did they go down going forward as you grow?

As the -- as we explained before, there was a 300 basis gross margin hit that we took back in Q4 2010. And so as we grow that, we get some of it back. We get some of the gross margin improvement out of it. But one of the things to keep in mind is we'll also be balancing revenue growth with gross margin growth.

The, the -- to answer your point, it's still the same formula. We build the capacity around $70 million. So we're still running at the $50 million range. So we still have a lot of room we can improve.

Great. And then as the last question, a little bit more housekeeping, what tax rate should we think about for the rest of this year.

I would say between 5% and 10%.

Great. Thank you and congrats again.

Thank you.

Thank you. Patrick Wang, Evercore Partners.

Great. Thanks so much and congrats on a really good print and guide. I know you don't usually talk about this, but your sales guidance was very strong. Can you give us a sense of how your bookings trends were, perhaps the I guess the linearity or shape over the quarter? I know that you said it was strong throughout the quarter, but you can give a little more color there? And then also you entered last quarter with a lot of backlog coverage. If you could also give us a ballpark on how much you got headed into Q2?

Last quarter was an exception. It's typically a down quarter and we were projecting revenues to be flat to up. So as an exception, we shared the bookings number. For this quarter I will just say that we entered the quarter with good bookings and we're comfortable with the quarter guidance.

Okay. So I mean should we think about that as, as this one as more of a typical quarter that we've seen in the past from MPS?

It is a typical quarter, yes.

Typical quarter. Okay. Got it. Great.

And then also I want to follow up on Ross's question on gross margins. When you think about margins over the course of the year, you know, just the way that you guys have guided revenues for the second quarter, it almost feels like we should really start approaching something in the 60s in the back half of the year. And if we do that, what's the best way to think about the margin progression over time? I guess it's just, you know, when we take into account the underutilization charges and I guess maybe [four or six] quarter you guys got hit on higher [wafer] costs, as well.

Well, as I stated earlier, consumer and percentage of consumer product will go low, but overall dollar will still go up. So overall, the overall margin as a revenue growth, it should go up slightly. Although we don't want to -- we don't want to amplify the margin only. We want to have a balanced growth between gross margin and also the revenue growth.

Okay. So is it fair to think about as we approach 55% margins is that -- do you wanted us just to think about that, or is it more kind of 53% to 55%, healthy range, and looking to maximize top line growth?

Yes, we -- our current model still has a 50% and a 55%, so we are also in the middle now, and as the revenue grow you will expect that we will go even higher. But, we -- at this time we're not changing our model.

Okay. Great. And then also, you know, we have been pretty excited about an opportunity with MPS ramping at a big comm equipment supplier out there. I'm just curious if you can give us an update on some of the key milestones with sampling that power module, and if any of that is baked into your Q2 guidance?

No. The modules we're actively engaging with our customers, we have a conference call with them every week, and for the progress of that project and we don't expect that any revenue near the second quarter or even the third quarters.

Okay. Great. Thanks so much, guys, and congrats, again.

Thank you. Operator, are there any more calls on the line?

Operator?

Steve Smigie, Raymond James.

Great. Thank you. Just to follow-up a little bit more, you guys had a very strong result here on the first quarter and very strong guidance. How can we think about seasonality this year given that? Typically Q3 would be a very strong quarter from you, so first of all you're moving more towards networking business and other areas (inaudible) that will probably mean you'll have less, you know, that seasonality going forward, plus you just had two above expectation quarters. So how should we think about that seasonality this year and next year when you have more of that mix in your business?

That's a good question and we try to figure out what is seasonality. Also relating to the next couple of years financials and the market, unstable market, and with our new business, and we really can't tell. But close to 50% of our business still in the consumer side. So I was still expecting to have a very similar trend, but not as much -- not -- well, we don't have a typical pattern anymore.

Okay. So probably wouldn't be fair to sort of model a big dropdown Q4 and then even bigger drop down Q1 anymore. Should probably smooth that out? Would that make sense?

Well, we don't, we never had a Q4. We have a Q3 would have -- we always have a big Q3. And the Q4 slightly down, even or slightly down. And I don't see, it really depend on comm market and also the computing market and what the Q3 will be and we still contemplating. But at this time too far for us to see it.

Okay.

But overall I expected to think the new product designing, designing activity happened in the last year, and I expect the revenue continue to grow.

Okay. Within the operating expenses, can you give some color on what the mix would be percentage-wise, dollar-wise, SG&A versus R&D, and talk a little bit about R&D spend over the rest year of the year? Is it a certain dollar amount you guys are looking to spend the year? I guess that's the question.

In terms of the OpEx, R&D we have got all the head count on board, so any increase would be associated with new product releases and assets and development rates a lot, things like that. But with regard to sales and marketing, which is higher than field sales and marketing executives and we'll be adding a few more as we find them. So I would expect salaries to increase up a little bit, and then we would also have variations. I would say sales commissions could go up and down along with revenues.

Okay. So I should think that you probably would see a fast -- much faster ramp in SG&A going forward, and then R&D dollars since you already had the spend in place, that dollars probably won't ramp that significantly?

Yes, and even SG&A, the ramp is not going to be that significant but there will be an increase.

Okay. And last question with regard to the new products coming out, can you help us think about how we should be looking at ASP in units? It feels like the ASP is going to be going up a lot. Does that mean units go down quite a bit as well, because again you're moving away from those higher-volume markets?

That's true. We have other computing products, and those are the new generation of computing products, we pull out that involve higher ASP. And also for storage and the new generation where products for SSD and HDD are higher -- higher priced and both products have a higher content.

All right. Thank you.

Thank you.

Rick Schafer, Oppenheimer.

This is Shawn Simmons calling in for Rick. Congrats on the good quarter and guide. I have just a couple of questions. Quick on your set-top box business. Can you guys just talk about where you're taking share, just geographically?

I think it's all over the place, in Europe, US, Asia.

Okay. Great. And can you give us an update on your past auto design wins? I know you guys got pretty good traction in Europe and then one design win in Asia last quarter. Did you pick up any incremental share there, or do you have any further color on that?

Yes, we do have someone designing in the US market although we're not really qualified for the Big 3 auto makers, but we're designing involves a component maker.

Okay. And then I guess just one last question from me. What do you expect to do with internal inventories? Do you guys expect to take them up here quarter on quarter as you build for a seasonally kind of stronger second half?

Yes, we expect increase our in-house inventory levels. It will be getting closer to our in-house inventory models, but maybe still slightly short of that.

Okay. Great. Thanks guys.

(Operator Instructions) Tore Svanberg, Stifel Nicolaus.

A few questions. First of all, you had converted over to BCD3. Where is the percentage now and where would you expect that to be by the end of the year?

BCD3 is currently we are converting all of the product based on the BCD Plus --.

To BCD3.

To BCD3. And BCD4, the fourth generation, we're planning to release in production the end of this year.

Okay. And, I guess, the reason I'm asking the percentage question is because I'm trying to understand the impact on gross margin. So at the end of the year would you have a pretty high percentage in BCD3?

That's correct.

Okay. Very good. And you talked about the Grantley design and I understand you're not going to get much revenues until 2014. But when would be the earliest you could potentially announce a design win there?

You're talking about BCD3?

No, no, I'm talking about the V-core design win for Grantley.

Oh, V for -- yes, we do have a -- we can't call it design win because the production day is a little further away, and but certainly many leading manufacturing -- leading supply from a in a server market, they're very interested in MPS solutions.

Very good.

In fact, right after Intel sent out the approved vendor list, we got a lot of requests from customers asking for samples and boards.

Very good. You guided legal to be -- legal expense to be $100,000 to $200,000 -- sorry, to $300,000. Is that sort of the new run rate going forward.

For the rest of this year, we can expect it to be at that rate.

Okay. Very good. And you had a little bit of a step-up in CapEx. Is that it for now? I know we're going to go back to sort of $2 million to $3 million?

Yes, I think we'll see another quarter where CapEx will be up and then we'll be back to the usual levels.

Okay. And when we talk about communications, I think you mention Telecom as an area that's big for you. I didn't think that was a pretty material business for you. I mean, I should still think that in comm it is primarily networking, right?

Networking is a bigger chunk, yes.

Okay, I just wanted to clarify that. Okay. Very good. Again, nice quarter. Thank you.

Thank you.

Vernon Essi, Needham & Company.

I apologize if you had already addressed this, but what is the update on your outlook for the LED lighting market? And sort of how that is progressing? And I guess give us the landscape of where you're seeing the most traction right now?

Well, we have -- we had a product and we had a little problem and we corrected it. So we got a designing now. We got a designing -- we've got a multiple, it is called a multiple design wins after we released this product in early -- end of the last year. And so we'll have enough meaningful revenues from LED lighting in this year.

Okay. And so should we be looking at -- I know you've historically broken out this revenue with lighting controls and some of that is probably, the bulk of that could still be sort of in the computing area. Correct?

Actually, we have continued to break out the revenues by product type as well as BCDC and white lead. But what you see as lighting control it includes board lead lighting as well as back lighting revenues.

Okay. But is it fair to say when we look at that $6 million number for the first quarter that -- what would be the split of that between monitor-based revenue versus general lighting?

The majority of that would be--

My understanding is about around $5 million to $6 million area.

Yes.

Yes. So in this year the monitor business is still will be very strong, as we'll release a new product for the market, and we also see that lighting business will grow, too.

Great. So let me just back up. You're expecting, the growth you will see in 2012 would be contingent upon your success in the general lighting market. Is the monitor market, or the computing market, expected to grow for LED for you or is it flattish?

Yes. Both will grow.

So we're focussing on growth from the lighting market.

Okay. Thank you.

Steve Smigie, Raymond James.

So it seems overall that the -- not specifically you, but the TV end market overall seems to be maybe finally getting a little bit better. Do you still have product there that could grow? And any chance that some of the big guys over in Korea would be talking to you again about any products you have out there?

Well, we did in 2010, we did a loss of a lot of revenues in the TV market in 2011, we did a loss of a lot of revenue then in the market -- in the Korean TV market. Now the overall TV market, we -- in 2010 in our revenue, is about a 30%. And in terms of overall market, we're still a small, it's not a dominant player, like 20%, 30% of our total market share. So, without the Korean, major Korean TV makers, and so our percentage is much smaller now, and with a (inaudible) -- with a Cool Power product win release in the last year, and we expect to gain some shares, and although that is not our focus.

Okay. And sorry if I missed this somewhere, but you -- appreciate you guys giving the end market breakout, it is very helpful. I think you gave us Q1. I think you gave comparisons for Q4 and Q1 a year ago. If you guys could post maybe on website or send it out, could you [apply] Q3 and Q2 if it is not somewhere here in the press release that I missed it?

I can give you the Q4 and the Q1. I think I already gave Q1 2011. I can give you an approximation of the Q4 2011, if that would be helpful.

Sure. Yes, I think you gave Q4 2011, didn't you? I could be wrong.

I gave it in the script, but let me walk through it one more time. Communication is about 23%. Computing about 18%. Consumer was 52%. Industrial is about 7%.

Right. I appreciate it. I think there is a blank there for Q2 and Q3. And I was just wondering if at some point you could send that information out?

Sure. Q2 communications was 24% in Q2. 23% in Q3. Computing was about 14% in Q2 and 17% in Q3. Consumer is about 57% in Q2 and 53% in Q3. Industrial is about 6% in Q2 and about 8% in Q3.

Great. Thanks a lot. Appreciate it.

Thank you. I'm showing no other questions at this time. I would like to turn the program back to management for any concluding remarks.

Thank you for joining us on this call. Look forward to talking to you again next quarter. Bye-bye.

Ladies and gentlemen, thank you for joining today's conference. This does conclude the program and you may now disconnect.