Parkervision Cellular OEM Announcment
December
21, 2007
Jeff Parker
John Stanley, with
Michael Donahue of Emerging Growth
Equities
Greg Lewin of Lewin Capital
Phillip Anderson of Pinnacle Plan
Jim Whitten of Laidlaw
John Peacock of MaxTak Partners
Woman1: Good day everyone, and
welcome to the Parkervision special conference call and webcast. Today's call
is being recorded. At this time, for opening remarks and introductions, I would
like to turn the call over to Mr. Paul Henning. Please go ahead, sir.
Paul Henning: Thanks very much. But before we get started, I want to remind
listeners that this conference call will have certain forward‑looking
statements which involve known and unknown risks and uncertainties of our
business, and our businesses, and the economy and other factors that can cause
actual results to different material made from those expected achievements, and
anticipated results. Included in these risk factors are the ability to maintain
technology advantages in the marketplace, the achieved time, the market
introduction and acceptance of our products, maintaining product copy
protection, and the availability of capital, among others. Given these
uncertainties and other factors about our business, listeners are cautioned not
to place undue reliance on any forward‑looking statements contained
within this conference call.
Additional information concerning
these and other risk factors can be found in our filings with the Securities
and Exchange Commission. We will begin today's call with Jeff Parker, CEO of
Parkervision, and we will add additional comments to the release we put out at
noon today. Jeff, would you like to begin?
Jeff Parker: I would, thank you. Well
good afternoon and thank you for staying around at the end of the week and the
middle of our holiday season here for this conference call update. I know that
many of you are probably ready to rush off to holiday parties and perhaps you
are at the start of a nice holiday vacation, so I am going to keep this call
brief and to the point.
As you've read in our press release that was issued earlier today, and with
great pleasure, we announced that we have entered into our first licensing
agreement with a worldwide provider of chipset, the handset manufacturers. The
agreement is for the use of both our D2P transmitter and D2D receiver
technologies. These will be integrated into 2.5 and 3G chipsets, for initial
shipments in late 2008.
I'd like to take a moment to comment on a few items that we mentioned in our
press release.
Our first applications are targeted at single mode two 1/2 and 3G handsets.
This customer is able to leverage the investment we've made in our existing
integrated circuits to enable the quickest time to market. While we've
certainly discussed the benefits of our technology in more feature‑rich
complex applications, this particular application also demonstrates the benefit
of our technology in more price‑sensitive, high‑volume applications
as well.
As we've discussed in the past, many of our target customers have expressed
interest in our D2D receiver technology, as they explore and become familiar
with our D2D transmitter technology. As this customer became familiar with D2D,
it became an integral part of our agreement. We expect that D2D will somewhat
lag in time in the integration of our D2D technology, but this does not delay
initial product launch at all. We were very pleased to be able to close this
first agreement before year's end.
We are just as enthusiastic to continue focus on securing additional design
wins in this state. Certainly, speeding toward high‑volume, cost‑effective
silicon continues to lower the barriers to entry in this market for
Parkervision. This agreement, by the way, does not prevent us from continuing
to discuss and negotiate agreements with all of the other OEM accounts that we
have been in discussions with about D2P, and the 2G, 2.5G, 3G and beyond
applications, and we fully intend to continue a full‑court press to
secure additional design lines, albeit after the first of the year.
An exclusive request of our customer is that their identity not be disclosed.
This is for sound strategic reasons, and I am speaking from their point of
view. Although I would love to share with you who this customer is, if you look
at many companies in this competitive space, it is not uncommon to hold their
suppliers in confidence for strategic reasons. We will be a trusted partner to
OEMs that want to take advantage of our technologies, and we are more than
happy to accommodate that condition to get launched in this market.
There are defining moments that are key milestones in doing most anything
worthwhile. This market space is large and it is also challenging to break
into, and we believe worth the investment and effort. Our first commercial
customer is first class, extremely professional, and we look forward to a long
and successful relationship with them. This customer has vision, as they were
willing to look at a different technological approach to the way things can be
done, and to not get hung up on the way things have been done historically.
They deserve to reap the benefits of having such vision, and we will do
everything possible to help them maximize this opportunity.
I want to thank our team, who made it their own personal goal and who gave up
significant family time to achieve our first commercial design line this year.
There are several, and you know who you are, that without your efforts, this
wouldn't have been possible. I hope you have a great holiday vacation; you
certainly earned it. And to our investors, who haven't wavered in their support
and belief in us and our vision, we thank you, and we wish you an incredibly
happy holiday and the most success possible in this upcoming New Year.
So now I'd like to open this call to your questions.
Woman1: Thank you, sir. Today's
question and answer session will be conducted electronically. If you would like
to signal to ask a question, please do so by pressing the star key, followed by
the digit one, on your touchtone phone. If you are using a speakerphone, please
make sure your mute function is turned off, to allow your signal to reach our
equipment. Once again, that's star one for questions.
And we'll take our first question from John Stanley, with Stanley Partners.
John Stanley: Jeff, congratulations on
your second licensing arrangement.
Jeff Parker: Thank you, John.
John Stanley: I've got a few questions, if
I may.
Jeff Parker: OK.
John Stanley: Your press release noted
that the license covered both the transmit and the receive side.
Jeff Parker: Yes.
John Stanley: Does the five to 10 million
dollar royalty number that you put in there assume one of those sides?
Jeff Parker: It assumes a couple of
things, John, that's a good question. We believe that the receive technology
will start shifting some time during the first year, albeit not right at the
beginning, but we've contemplated that some time throughout that year, we will
start to see some of the D2D royalties. There is also the way our royalty
works; there is a range based on the complexity of the application; you know,
how many bands, different modes of operation and things like that. Though the
royalty range is a function of the D2D coming in a little later in the first
year, and then a mix of various types of implementations that we anticipated.
John Stanley: OK. And Jeff, can you
explain how the D2D technology improves handset performance and what exactly is
the value proposition?
Jeff Parker: Sure. Since I'm sure people
are probably not wanting to spend a whole lot of time on this, let me do it
real succinctly and of course in future follow‑up we can go into more
detail. But you know, we haven't spent a lot of time talking about D2D
recently, and just in high level, it has very similar benefits, actually, to
our transmit technology, in the sense that it does bring some lower power
consumption opportunities; it definitely brings some lower cost opportunities,
it enables some very interesting levels of integration that are more difficult
to achieve with the more analog approach that's used today, and depending on
the application, there are also a few performance attributes that can be
enhanced using this type of sampling technology that we developed.
So if you look at it in context of waveform quality and lower power and higher
end [indecipherable] and lower cost, similar kind of themes that you see
through our transmitter technology, and that's something that this customer, as
they went through their due diligence, saw and said "Well let's explore
that more, because this could be something that we'd like to look for right
away," and ultimately we found that there was a good fit for them, and
hence the agreement.
John Stanley: OK. Jeff, how comfortable
are you with your intellectual property protection?
Jeff Parker: Well, we're very comfortable
with it. I mean, you know, this is a sophisticated customer with signing
agreements in real dollars. And you know, I think that always speaks volumes
when people are thinking about what's the quality of an IP portfolio.
But I think that between using what I think is probably one of the best IP law
firms in the world from the get go, following guidance at the beginning, and
having the patience of doing this in a very methodical way that we've built
this portfolio, customers we're talking to, really have been, from what I've
seen, very impressed with what we've built in an IP portfolio. It certainly is
a key for people signing licensing arrangements. So, I feel very comfortable.
We've built a very valuable and strong IP portfolio certainly for licensing
matters.
John Stanley: OK. And then can you also
give us an update on the ITT project?
Jeff Parker: ITT continues to move along.
They, you know, we're in frequent kind of ongoing dialogue with them, which is
just the very nature of our working relationship. They've continued to sell it.
They're very pleased with the relationship, like the direction that it's taken,
and continue to be enthusiastic about this technology and how it fits into
their future products.
I haven't had time. You have to talk to them about this latest design win. I
think they will be very happy to see that we've started attraction in the space
that they've known all along is our primary target market and we'll continue to
reinforce for them that they made a very good decision in choosing
Parkervision.
John Stanley: And then lastly Jeff, do you
think today's announcement will accelerate additional relationships?
Jeff Parker: You know I, John, think that
having the customer that's committed to putting this into chipsets for handsets
and all that goes with that, you know all the preparation for high volume
production and everything else, certainly helps lower the risk for the next
customer and certainly the ones beyond that. So, I think that just from that
very fact alone it will definitely accelerate the next deals. So, yeah I do. I
think it'll help us a lot.
John Stanley: OK Jeff, thank you very much
and congratulations once again.
Jeff Parker: Thanks John, have a great
holiday.
John: Thank you, likewise.
Woman1: And we'll go next to Michael
Donahue of Emerging Growth Equities.
Michael Donahue: Hi guys.
Jeff Parker: Michael.
Michael Donahue: Just trying to put the deal
in perspective, how would you characterize the magnitude of this deal in
relation to the ITT deal? And then how would you characterize the magnitude of
the deal in a bigger picture like where you'd see Parkervision three years from
now.
Jeff Parker: Well, OK, those are a few
good questions. So, as this relates to the ITT deal, I think this will ultimate
prove to be significantly more valuable than the ITT deal in terms of just
sheer revenue.
You know this first year that we've given a five to million royalty prediction
is kind of an, as mentioned earlier, kind of anticipating a ramp, a ramp built
in volume and a ramp in technologies that are deployed, you know, that they
lease from us, starting with the transmit technology and then as the year
progresses including the transmit and receive.
And certainly I think that what this one customer‑‑there's a
tremendous amount of significant growth that we see happening because their own
markets are growing. We think they're going to get some nice share of market
increases with this particular technology. They certainly think they are.
That's one of the things they saw in us when they started were looking at it.
And then they are very committed to expanding into other more complex
applications. I mean those applications that they started with are the fastest
to the market. So, we're grateful to them for starting there. But, you know
they're already talking to us about 4G applications and other multimode type
applications.
Michael, I think the first year is just a good launch. I think you're going to
see a significant growth beyond that. I would certainly hope that three years
from now we're talking about them as one of a number of customers.
And as mentioned earlier during the call, nothing in this agreement prevents us
from pursuing or closing an agreement with every other customer we're been
talking too. I think it will make it easier with some of those customers. And
so I think what this customer has done is they've helped kind of kick the
snowball off the top of the mountain. It's going to start rolling down now,
gathering some steam and some size.
Michael Donahue: Let's say three years from
now, is this customer like a five percent customer, a 10 percent, 50 percent?
I'm trying to gauge I guess the size.
Jeff Parker: Do you mean of our business?
Michael Donahue: Yes, of Parkervision's
business.
Jeff Parker: You know that's a good
question. I don't know right now. That's a good question Mike. I want to ponder
how to give you an answer on that. That's frankly more thought behind than I
have right this moment. Frankly, the last couple of weeks have been fully
consumed with working through all the nuances and detail of right now are
typically complicated agreements, where all parties are trying to contemplate
not missing anything.
Jeff Parker: But that's a good question.
And I would like the opportunity to circle back around to you on that.
Michael Donahue: Well, would you say that
this deal is just the beginning of things to come?
Jeff Parker: Oh, absolutely. This customer‑‑look
at it this way, I can't tell you what percentage this customer may represent of
our total business three years down the road...
Jeff Parker: But I can tell you that this
first year royalty revenue I think represents a very small potential of where
we could be three years from now, very small.
Michael Donahue: OK, and just the last thing
was now with the ITT agreement, now you got a major chipmaker and a handset maker
all involved in your technology. Do you think this should eliminate any doubt
in the market as to the viability of your technology?
Jeff Parker: Oh, Michael. That's a good
question. You know you'd like to believe as a scientist, I'm an engineer, that
people would look at facts and that they'll base their judgments on facts.
But unfortunately some people have emotion to come into the fray and perhaps
they pepper that with their own financial self interest, which may not be in
our best financial interest. So, I can't tell you that everybody will look at
this and go, "Hurray, Parkervision's proven it's point, checked the box.
So, they'll go look at other things that maybe need to be looked at.I can only
tell you this, that people who maybe for some reason don't want to take a look
at the technology in the most logical, scientific way, in laboratories, won't
have to wait too much longer to just take it off the street in a handset. So,
they can look at it that way and go from there.
Michael Donahue: Right, all right. That's all
I have, thanks.
Jeff Parker: Thanks Michael, have a nice
holiday.
Michael Donahue: You too.
Woman1: And we'll take our next
question from Greg Lewin of Lewin Capital.
Greg Lewin: Hi Jeff.
Jeff Parker: Greg.
Greg Lewin: Three little points just to
follow up on the beginning questions.
Jeff Parker: Sure.
Greg Lewin: One, understanding the depth
that you went into and the sweat and tears to get these agreements. To what
degree do you think this agreement may be able to serve as a template for the
next one? Or are they all going to be terribly unique?
Second question‑‑I'll remind you of them if you forget‑‑is
what do you think you're schedule is in terms of what you know from the patent
office on being able to further publish your science? Whether it be on a
website or wherever you want to do it?
Jeff Parker: OK, great.
Greg Lewin: Third, the resources that
will be involved. There was no discussion of engineering type relationship, the
resources involved with this customer relationship and how that will strain or
stress you with furthering other relationships.
Jeff Parker: OK, those are three good
questions. OK, so let's start with patents and our ability to use those
documents to start to discuss more about our technology. Well, in addition to
the patent that has issued on the D2P technology, there is I know of one and
there maybe two. I don't remember. It's either one or two more than have been
allowed. In addition to that, a number of P2P patents have published. It
doesn't mean that they've been allowed. It means that they've been filed for a
time period I believe it's 18 months, thereafter, they become publicly available
for viewing.
That provides quite a bit of information for us to work with. We have been bust
readying updates to our website that will start to discuss in more detail
"what exactly is the science behind this technology, and why does it
deliver the benefits that it can deliver". And honestly, Greg, you're
going to find that it's pretty straightforward to understand. My hat's off, and
accolades to the guy who developed it. I didn't have a hand in developing this
particular science so I can say that without sounding egotistical. They did a
great job, very clever, and it makes converge certain kinds of efficiencies
over a variety of operating systems that you just can't get out of traditional
power amplification, using the linear technique that people have been using.
And it still makes beautiful wave forms, and it's robust under all kinds of
operating conditions.
So that will happen. I can't tell you right this minute exactly what week that
will happen, but we'll start... that's one of our high priorities for early
next year.
The second question was templates for the next deals. I think that the legal
agreement that was pulled together for this customer will be a good template,
and the reason I say that is because we are in negotiation with other customers
and we've been using a certain template with a variety of people. There are
certain little nuances that different company's legal teams have that you try
to accommodate, but by and large, there's a lot of reuse in this. So I think
that's going to be very helpful and will help speed things along.
And in terms of our own resources, what's most encouraging to me, when I think
about this as a CEO, and the funding needs of the company and the growth
potential and opportunity is what you have in the d2p and even in the d2d
technology is, the silicon that we've developed is more platform oriented than
it is specific application oriented. You have certain core limitations‑we
couldn't take our silicon today and go charging off into infrastructure
products, as an example‑but within the mobile, terminal market, where
people are talking 2, 2.5, 3, 3.9 and 4G applications, it's really pushing and
pulling our circuits around and there's a lot of reuse of our platform.
It took quite an investment up front, of time and dollars, to get to this
point, but now that you have this platform, this is why a smaller team than you
could possibly do this using traditional conventional approaches, can support a
significant customer base, as long as the customer base is looking to use this
for the same kinds of standards.
And that is our focus. That's our target. I don't see us charging off into
other adjacent markets right now, or different markets. We're very happy to be
seeing at the start of adoption in mobile handsets, and there's lots and lots
and lots of room for growth there. So I think this team we have today, without
significant growth, can support quite a significant customer base as long as we
stay with our target applications, which is the terminal handset marketplace.
Greg Lewin: To formalize the comments
you made, you have now these two agreements. What is your vision on whether or
not you will need additional funding to reach your goal?
Jeff Parker: Right now we're going to wait
and see how this evolves. As I mentioned in our last quarterly report, we only
used four million in cash this year. Some of that was from warrants and other
things that have been exercised, and because we have a nice robust shareholder
price that people exercised [indecipherable] options. Depending on what happens
in this next.
What happens in the coming months, we'll have to wait and see. We may be just
fine. I will say that there's no plan in place at this moment to balloon our
operating expenses so I think we're in really good shape right now in terms of
cash and our ability to fund us to move forward.
Greg Lewin: Thank you Jeff.
Jeff Parker: Thank you, have a good
weekend.
Woman1: And we'll take our next
question from Phillip Anderson of Pinnacle Plan.
Phillip Anderson: Hi Jeff. Happy Hanukkah to
you.
Jeff Parker: Thank you, Phillip.
Phillip Anderson: Sure, this is the first time
in my thirteen year career I've been happy to be part of a conference call at
the close of a Friday on a holiday weekend.
Jeff Parker: Well, I have to tell you, we
were rushing to get this closed. I was thinking to myself, "I hope we're
going to get this closed on a day that there's going to be someone around to
hear". You know, so this won't be like the tree that falls in the forest
and there's nobody to hear it, so it doesn't occur.
Phillip Anderson: You've certainly made the
right decision by doing this and, being the holiday season, you've given us a
good gift but I'm asking you to give just a little bit more if I can. Tell me,
why are you not surprised?
Going back to the IT&T conference call, you mentioned during that call that
there were several customers who advanced to the point in time where you felt
that it was more likely than not that a contract would be signed and a customer
would be initiated and that we would be having a conference call prior to the
next quarterly conference call. That was proven true during the IT&T, and
you made a similar comment on the recent conference call to respond to the
Barron's article.
My question is this: if we have several potential customers now wanting to
matriculate and become a customer, to what extent do we have engineering
resources and bandwidth to handle more than one customer at a time?
Jeff Parker: If they are focused on the
same cell phone standards, for multiple terminals, not for user specified, we
could handle several more customers. We are very well positioned because the
technology is more of a platform technology, not reinventing it for every
customer, one at a time. We're extremely well positioned to do that with our
existing staff.
We've been reviewing budgets at the end of this year and we'll wrap those up
shortly but at this point, there is no plan to materially expand our operating
expenses and we could get another couple of customers and I believe we could be
in pretty good condition to maintain that.
I will say the extent that customers come online will want more and more
receiver technology from us, and that might expand it somewhat, but not at a
rate that would be uncomfortable financially for us.
I'm very pleased with where we are because of the investment we made in the
platform technology.
Phillip Anderson: And to the extent that your
technology has been advanced to satisfy whatever the application is from your
current customers. Is that technology owned by Parker? Would it be
transferable, or would it apply to whatever applications the other customers
may want?
Jeff Parker: Well, from an intellectual
property standpoint, we own and have access to the improvement on our
technology. You have to do that as a licensee or you will end up losing rights
your technology somewhere down the road.
From an actual implementation standpoint, if there are chips that we develop,
or circuits that we've developed, that we allow customers to go off and produce
then, yes, we can reuse those with as many customers as we want.
If there are circuits that customers go off and use internally, and you've
maybe heard in previous calls I've suggested that some of our circuits could be
absorbed in other people's guises, so we won't have access to that. There are a
lot of circuits that we will have ownership of ourselves and it will give Micro
Disk customers and any other customers to market quickly.
Phillip Anderson: You mentioned in your
response to another gentleman's question that your customers are pretty
impressed with your IP portfolio and the work that your law firm has done to
create that. Can you tell us which law firm you're referring to?
Jeff Parker: I'm sorry, list that one more
time.
Phillip Anderson: In an answer to an earlier
questioner's question, you mentioned that the prospective customers which had been
reviewing your IP portfolio and all that that entails, had been impressed with
the portfolio that has been created. And in part, I think they're impressed by
the work that the law firm which is representing you has performed in that
area. So I was wondering if you could tell us who the law firm is.
Jeff Parker: Yeah. So, so if we're to
share credit where credit is due I think it really needs to go to a couple
places. It needs to go to the Stern Kessler firm, where Rob Stern is one of the
co‑founders. They've spent a great deal of time and attention in helping
us strategize and build our patents. They're a very skilled team and a very
knowledgeable team who do this for a living and who have been doing this for a
long time, and who represent a lot of very prestigious clients.
You can go on their website, that's KGS.com, and they list some of their
clients; pretty impressive. And thankfully our CTO, David Sorrells, has
developed quite the expertise in working with a firm like this to create the
strategy, execute on the strategy, and make sure that we have timely filings
and that we don't leave any stone unturned of capturing the intellectual
property that we need to build the kind of licensing business that we all hope
this company will represent looking at the future.
Phillip Anderson: When do you think that the
new page on your website is going to come up so that owners and skeptics can
all see what it is that people decided they want to spend ten million dollars
to buy.
Jeff Parker: Yeah. Right. Well, you know,
whether it convinces the skeptics or not, I can't tell you. I can only tell you
that the technology obviously works, and it works as we have built it as
working and the benefits are what they are. But if people want to ignore that
and turn to something else, well, they can always do that. That's an age‑old
Machiavellian issue.
But in terms of ability for people to get their arms around that stuff, it'll
be early in the year. I hesitate to give you a date just because I haven't
spoken to the guys both within our organization and some of the consultants who
we're working with, who are helping us pull on it together to make it look
professional and easy to follow. But it'll be early in the year.
We're very enthusiastic to get that information out there, because frankly I
think the people who want to use our technology and who want to understand why
this is a step forward in RF technology will get a lot of benefit out of this.
Phillip Anderson: What I'm thinking of, that
would be something which would all work together.
Jeff Parker: Absolutely.
Phillip Anderson: The last question, Jeff. At
the risk of biting the hand that's feeding me here I'll just ask you one
question about the customer, the end‑user. Can you tell us whether the
customer, the end‑user here is a public or a private company?
Jeff Parker: Well, I have told them that I
would absolutely be tight with who they are, would give no temperature on them
whatsoever. And as I said earlier in my call, I would love to be able to share
it with you guys, I really would. And I would suspect somewhere down the road
that maybe they will come forward as products are shipping. I don't want to
make that prediction for them. They'll make their own determination.
But I can just tell you that it's not just this customer who has this M.O. of
operating under confidentiality, for something that they want to deploy that's
new and they think strategically important. There are a number of customers in
this industry like that and you see that all the time. So I also want to send a
strong message to other companies who want to operate with us like this, that
they're going to get that exact same treatment. And they should have full
confidence in moving forward with us and we will operate absolutely tight‑lipped.
What's important to us, and I hope it's important to our share‑holders,
is a revenue stream that grows and grows and grows. Yes.
Phillip Anderson: Speaking as one of your
share‑holders I find that to be very important.
Jeff Parker: Well, good. We're aligned on
that. Have a great week‑end.
Phillip Anderson: OK, thanks Jeff, very much.
Happy Holidays.
Jeff Parker: You too.
Woman1: I'm going to take our next
question from Jim Whitten of Laidlaw.
Jim Whitten: Hi Jeff, congratulations.
Jeff Parker: Hi Jim, thank you.
Jim Whitten: Most of the questions have
been answered but I just probably want to resign one more. In the short term do
we get any engineering funds from this particular company?
Jeff Parker: I'm sorry, Jim, what was that
again?
Jim Whitten: Will we get any engineering
funds from this company?
Jeff Parker: No, we won't. You know, what
this company is doing is they're deploying some of their engineers to absorb
some of our circuit into some of their own chips, which makes it very cost‑effective.
And they were very pleased to see that they could leverage some of our other
silicon that we developed to get to market quickly.
And so what they said is, hey, we'll put our resources on getting this into
market quick. We'll open the door for you guys. And we're not going to
constrain you guys from going after all the other customers you've been talking
to. So, Jim, I looked at that and said, the relative amount of engineering
services we get out of that against what we give is just not significant.
What we're getting is two orders, three orders of magnitude more in opportunity
than what any engineering services would have been on that.
Jim Whitten: Very good. Congratulations.
Jeff Parker: Thank you. Have a great week‑end,
and good holiday.
Woman1: We do have time for one
final question. We'll take that from John Peacock of MaxTak Partners.
John Peacock: Hey Jeff, what's going on?
Jeff Parker: Hi, John. Well, I'm happy,
but I'm tired. Looking forward to a restful weekend.
John Peacock: I can imagine. Listen, first
of all, I just want to congratulate you. I knew you would get this done and I
had full faith in the company. And I just want to say you have a great team,
absolutely great team behind you and I want to commend them as well first before
I ask you a couple questions.
Jeff Parker: OK, well, I appreciate that.
And by the way, my team wants to share with you guys in the investment
community support their thanks. Because they know that without you guys, they
wouldn't be able to go out and do this and have the opportunity. So it’s mutual
appreciation here.
So go ahead with your question.
John Peacock: The first question is, you
always spoke about maybe three or four companies that you were talking to and
negotiating with. And I was just curious: the one that you signed, was this the
one that was always ahead of the rest, or was this the one that was just in
negotiations and catapulted to the forefront?
Jeff Parker: You know, it's funny. It
depends I guess on exactly what point in time we're talking. You know, if we're
talking the more recent, the last number of weeks, then I pretty much thought
this would the one that would get closure. But if you go back a couple months,
it almost reminds me, and maybe this is a silly analogy, but you know you go to
some of the game arcades and you see the little squirt guns that move the
horses down the track. And the four or five kids shoot the squirt guns and
first this horse is ahead and then, oops, no, now the green horse is ahead.
That's kind of been the way this year has gone. And I am very hopeful that this
step forward for us will now move a couple more horses along more quickly. I
look forward to sending Happy Holiday emails to a number of companies we've
been in dialog with along with this press release and saying, I hope you have a
great holiday and I really look forward to working with you early next year.
John Peacock: Yeah, absolutely. The second
question is, are the royalties that you mentioned from both the transmit and
receiving side or from one side or the other?
Jeff Parker: It's a blend. It's not a pure
year. We see the beginning of the year start out with transmit only and then
somewhere in the year, maybe halfway, three‑quarters of the way through,
we'll start to see the receiver. We also see kind of a mix, John, of products,
because some of these are in 2.5G and 3G applications and some are in three.
There are different pricing levels and therefore our royalties are more or less
depending upon the applications. So it's kind of a matrix effect.
John Peacock: OK, great, man. Have a great
holiday.
Jeff Parker: Thank you. You as well. Thank
you very much.
John Peacock: OK, great.
Jeff Parker: Well, folks, I'm going to
wrap this up because I'm sure a number of you are ready to go out and call it a
day and enjoy your holiday. Thank you for your support. We truly appreciate it.
I look forward to a spectacular 2008. I hope that you guys will continue to
support us and that we will continue to please you with our progress and our
successes.
And you're no small part of helping us get there. Thank you very much. Have a
good holiday. Bye‑bye.
Woman1: And that does conclude
today's conference call. Thank you for your participation. You may disconnect
at this time.