So that makes the visibility of Q4 not as clear but as I said personally I’m optimistic.
David Williams: Great. A lot of really good color there. Thank you for that. And then maybe just on the automotive side. I know that revenue is still some time out. But any updates there that would you like to share?
Balu Balakrishnan: As I said in my script, the level of interest in our products is just extraordinary. I mean, we have $100 million or so plus in identified opportunities. But more interesting is, how many of those we are able to convert to real design wins. The conversion rate is at least twice as much as the rest of the market, and so that gives us confidence that automotive is going to be a very, very attractive business. But even though, there is a couple of years away in terms of significant ramp we are feeling better everyday. We are engaged with a large number of big OEMs that all of you would recognize. And another large number of Tier 1s that supply to the OEMs. And the other thing, we’re finding is the number of socket that we fit keeps increasing every time we talk to the customer.
In some cases, the fact that we can offer such high integration and efficiency actually changes the architecture that they want to use. For example, replacement of 12-old batteries is really driven by the fact that we can offer a very efficient very reliable power supply directly from the main battery voltage whether its 400 or 800 volts and totally eliminate the 12-volts supply — the volt battery.
David Williams: Great. Thanks for the color.
A – Balu Balakrishnan: You’re welcome
Operator: [Operator’s Instructions] Our next call — our next question is from Mr. Tore Svanberg, Stifel. Please go ahead.
Tore Svanberg: Yes. That’s Stifel. Sandeep, do you have — what would you expect the channel inventory to be at in the September quarter. I think this quarter was just about 10 weeks. I know your target is 8% to 9%. So, what do you think it will come in at in the September quarter?
Sandeep Nayyar: Yes. I think, it should come around the 9%. And I’ll tell you I had expected this quarter the sell-through to exceed sell-and buyback 12 to 15 and it came in at 10% and that’s why you see that is being reflected in our Q3 guidance. For the next quarter I do expect about 5 to 10 million sell-through to be higher than sell-in and that should enable the inventory to come to the 9% somewhere around nine give and take.
Tore Svanberg: Got it. Perfect. Balu, sounds like Bridge Switch is really starting to take off now. And I was just wondering is the gross margin higher for Bridge Switch, or is it still in line with the corporate average? Because I guess eventually this could potentially be like 10% of your revenues, right?
A – Balu Balakrishnan: Absolutely. I mean Bridge Switch could be that level and automotive could be in the similar level remember they are similar in terms of $ 1billion of each. So we are very optimistic about both of them. In terms of design wins we have a lot of design wins. But thanks to demand being low we are not seeing the ramp as fast as we originally anticipated. But nevertheless we expect this year Bridge Switch will be in the mid single digit million but next year it could have a very strong growth simply because many of these designs will go into production by that time. As far as gross margin again it’s consistent with our overall gross margin for various market.
Tore Svanberg: Perfect. And then my last question is, you mentioned the computing category was up because of the third or like an accessory charger. And I guess, I’m just starting to feel confused, right? Because I don’t know anymore what is a PC adapter versus Cellphone adapter discussion as we move to PD so how do you classify what should be in a communications accessory adapter versus in the computing accessory?
A – Balu Balakrishnan: That’s an excellent question. So let me talk about radios concept. One of the areas we have done very well in that computer is Tablet . That’s grown very nice for us but in terms of aftermarket charges we classify them as computer is a bourdon power level. It’s I think about 45 watts or so if is a plus multiport. And if its multiport we have to classify it as a notebook adapters simply because usually it’s a very high power and it can charge notebooks on one port and cell phones on the other port but we have to pick up power. We have picked the power where we said okay below that it’s definitely cellphones. If it is about that it’s notebook. So that’s how we classify it. So the growth there came from aftermarket GaN charges primarily.
And we also have strong quarter on the desktop power supply standby power supply for that. So — but we are actually making significant inroads in terms of design activity for notebooks. So that should help us grow even further because notebooks we still have a relatively low percentage to share and that should allow us to grow computers over time.
Tore Svanberg: Perfect. Thanks for clarifying that. Thank you.
A – Balu Balakrishnan: Thanks, Tore.
Operator: I will now turn the call back over to Mr. Joe Shiffler Director of Investor Relations for closing remarks.
Joe Shiffler : Okay. Thanks everyone for listening. I’ll leave it there. there will be a replay of this call available on our website which is investors.power.com. Thanks again, for listening on this busy earnings afternoon and have a good afternoon.
Operator: Ladies and gentlemen that concludes today’s call. Thank you all for joining. You may now disconnect.
