Question-and-Answer Session
Operator
(Operator instructions) We will take our first question from Brian Alexander - Raymond James.
Brian Alexander - Raymond James
Yes, if I could just focus on the computer business here, your guidance for June, 9% sequential growth at the mid point that’s obviously below seasonality of 15% to 20% and it sounds like most of the weakness here seen in that business is server driven and my assumption is that that business is declining year-over-year but when I look at your largest vendors results they’ve already reported they weren’t very good in aggregate but they weren’t down.
So I guess we haven’t seen another one of you big vendors report yet but my question is how broad based in the weakness your seeing in the server business I think Bill you alluded to earlier that it’s across mid range in industry standard but can you give a little bit more color on the rate of decline you’re seeing between each of those platforms is it across vendors and then just remind us how big as a percentage of the computing business is the server category.
Mike Long
Brian we did see a server demand materially soften in the first quarter. That was noted by one of our major suppliers and we really anticipate that our server business will continue to be under pressure and as a result that’s we see a little bit less than normal seasonality in the top line for this second quarter.
The server business for us a round the 40% range so it does have an impact on our business overall and I believe it will have an impact. Now having said that as know in virtualization it takes more storage and more software so with those servers we do get an impact of good growth in software sales and in our storage sales and I would expect those to continue being strong.
But the server area is the area where we’re experiencing the weakness.
Brian Alexander - Raymond James
Mike you’re viewing as virtualization driven weakness for the industry as opposed to maybe a more aero specific issue with more of your exposure being proprietary which is lower than industry standard is that fair?
Mike Long
No, I’m sorry Brian what I would have to say that virtualization is causing the increase for us in software and in storage we did see some push outs in the first quarter and believe that it’s really not slowing but the push outs were due to customers waiting a little longer and sort of seeing and assessing the marketplace and I do believe it is economy driven not technology driven and not virtualization driven.
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