"In Q2 2017, our revenue was $65.1 million, down as forecasted of our last call about $84.2 million of revenue in the same period over the prior year. The decline in revenue was primarily due to a decline in the wearable sports camera market as we have discussed. We are seeing a near-term recovery in our China IP security camera business and are experiencing positive design win momentum in all of our current market categories.
The impact of the Sony sensor shortage was in line with our expectations with the most significant impact in the quarter on new product launches. As most new product launches have limited on-hand sensor inventory, purchases of other components were often delayed. We estimate of loss or delay in revenue was between $2 million and $4 million for the quarter.
We now believe our customers have a better understanding of the Sony sensor recovery plan for more established companies’ customers, we expect they will be receiving the majority of sensor delivers by the end of our Q3. ...we didn’t say they would be full production by the end of August. From a standpoint of creating or fixing all the backlog situation. They said they would have the lines up and running full capacity by the end of August, which we use and we take numerous months after that to catch-up on the backlog.
...outside China HEVC is not popular at all due to the royalty issues. But in China we start seeing that HEVC standard being well widely adopted and a lot of people are using them in for Chinese internal consumption. So I think that HEVC definitely is China market only."
