Paul Coghlan
I know we said softness in Europe, but we really meant to imply that that softness was seasonality, where factories are slowing down, doing shutdowns in the December quarter. We didn’t want to imply that we thought there was some softness in the European business. Again, so much of European production is for export, so really even if there is some softness in the European economy, it would probably be cushioned a bit, because that economy is pretty much – at least the products we are in — are very highly export-driven.
Steve Smigie
Okay great. Lastly and just to follow-up on the question about the stronger dollars. I think you guys and many of the semi guys price in dollars, so, as you have seen drop in other currencies, I am just trying to clarify, so your point was that even though you have seen the drop those other currencies, it hasn’t really seem to have much of an impact on your demand from those guys that might have European currency to buy with. Is that what you are saying there?
Paul Coghlan
Well, certainly your customer – first of all, remember we sell generally high-performance products, so we are selling products where there is not a lot of socket-for-socket competition for us. Once we win the design, we are pretty much in there. Then if the dollar strengthens, then our customer — the end customer — if he is Europe or Japan would have to pay more. Now, if it is a distributor, let us say, he may come to us and say can we help them out a little bit, we may or may not do that and depending on the circumstance. So I think what we are saying is, if we were selling a lot of commodity products, which sources from different parts of the world for the same product, a strengthening dollar would have more of a negative impact than a company like Linear, which doesn’t sell commodity products and doesn’t have as much competition from many other analog sources around the world.
Steve Smigie
Okay, thank you.
Operator
We will take our next question from CJ Muse. Go ahead. Your line is open.
Caller for CJ Muse, ISI Group
Hey guys. This is calling Ata calling you for CJ. Thank you for taking my call. Could you maybe provide some additional color on some of your smaller segments: computer, consumer, military, any areas of strength that you are seeing there?
Paul Coghlan
The military I told you was a little stronger, but I mean it is only 6% of our business. Consumer remained at 3%, so there really isn’t much to tell you there. Computer, you know, it is 9% of our business, we have some very valued customers in that space. I do not think there has been any kind of dramatic shift there though. There hasn’t been any anything that I would caution you that could lead that number to significantly go up or significantly go down. I think we are pretty well established where we are and have a broad base of customers in that, but it is only 9% of our business.
Caller for CJ Muse
Great, thank you. There have been a lot of questions around Europe, does the uncertainty and instability in Russia do anything for you guys or your exposure there is pretty minimal?
Paul Coghlan
Well, our direct exposure to Russia is very minimal. However, if the Russian situation were to get bad enough that it concerned Western Europe, well, then that could impact Western Europe spending patterns potentially or like if Russia didn’t supply them any natural gas or fuel for the winter, I mean, that could impact some companies, but we do not see that happening, but I think overall if you had talk to a European businessman, he probably feels there nothing dramatic going to impact them, but a year ago he wasn’t even thinking about Russia. Now think about the political situation there.
