“We probably won’t expect backlog will reduce in Q3, Q4, but the increase will be less each quarter, probably. Next year, we will start to see some improvement within the backlog.”

In context

“Ken Xie (Founder, Chairman and CEO): If you compare to the end of Q1, we increased backlog by $120-some million. At the end of Q2, we increased about $72 million. There is some kind of improvement on increased backlog. We put a lot of effort into sourcing different parts or different vendor-designed products. The product line is fairly broad right now. I believe the demand is still very strong, so we expect to keep improving. We probably won’t expect backlog will reduce in Q3, Q4, but the increase will be less each quarter, probably. Next year, we will start to see some improvement within the backlog. Our engineering effort and the kind of the investment we’ve made in operation and manufacturing lead us to believe we can improve a little better now.”