Paul Coster – JP Morgan
Thanks for taking my question. As we think about growth for ’15, and I’m sure you expect growth, you may not be prepared to be very specific about the quantity of growth this year but could you perhaps give us some sense of where are you expecting the growth to come from principally? Is it from international expansion, is it from new product, products extensions? New business segments or is it just simply largely going to be growing as first time adoption of the products we know today?
Jack Lazar – Chief Financial Officer
Hey Paul, is Jack. Well I think you did a pretty good job in summarizing the places where our growth is going to come from. There’s just a variety of places, you know, one of the things that you know and other who we’ve spoken to, we think that shipping now, you know 5.2 million units in the last year is just a very small number in the grand scheme of consumer electronics and other markets that we’re going after. So, whether it’s international growth, which obviously we’re going to see quite a bit of in this first quarter or whether is through new products and other things that we bring to market. We just think that there’s some really large opportunities, our results this year showed that, we fell pretty confident that it’s going to happen again in the upcoming year.
Operator
Our next question will come from Sean Naughton with Piper Jaffray, please go ahead.
Sean Naughton – Piper Jaffray
Sorry about that I was on mute, I apologize. Just an, looking forward and based on you know what you’re talking about on the international expansion, could you just maybe remind us. You know, are there any dramatic differences in the margins on those two particular, those three different segments that you have? And then maybe remind us about the distribution versus the the direct margins as well. Thank you.
Jack Lazar – Chief Financial Officer
Hey Sean, Jack. I think it’s kind of a combined question there so I think you’re asking about margins on original bases and basically on distribution. A lot of our international [inaudible] today are actually through distribution so they kind of go hand in hand it’s not exactly one to one but, but it’s relatively close. We do see, when we ship through distribution you can imagine that is a lower margin sale for us because there’s multiple layers above. So that’s one of the reasons why the, we pointed to in the gross margin a decline down to the guidance that we provided. Distribution is actually, probably the biggest piece of it in the first quarter. So, we see that those distributors have a lot of value, that’s a great investment to provide them that incremental margin. But obviously we’re still running this thing at margins that are over 300 basis points greater that it was being [inaudible] at this time last year. So, I think the overall geographic and distributer mix is something that we’re pretty happy with and it’s working pretty well for us.
Anthony Bates – President and Director
I just have one thing, [inaudible] to give an example, we talk about we just made our first [inaudible] to China and [inaudible] was so different mix of online and offline and you see that trend so that’s another key factor when we think about margin going forward.
