Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Matt Sheerin with Thomas Weisel Partners.
Matthew Sheerin - Thomas Weisel Partners
Yes, thank you. So my first question just regarding the book-to-bill -- Rich, what was the -- you mentioned book-to-bill by region. What was it in North America at the end of June?
Richard S. Schuster
Total book-to-bill?
Matthew Sheerin - Thomas Weisel Partners
Yeah.
Richard S. Schuster
For all components, Matt, or are you talking passives?
Matthew Sheerin - Thomas Weisel Partners
No, for all components, for your actives business, in North America business.
Richard S. Schuster
One-point-one --
Kurt Freudenberg
It’s 1.2-to-one.
Matthew Sheerin - Thomas Weisel Partners
Oh, I thought you said just your OEM business was 1.2-to-one.
Unidentified Participant
No, overall.
Matthew Sheerin - Thomas Weisel Partners
Overall, 1.2, okay. Why do you think you’ve seen such a spike there?
Arthur Nadata
The activity level has picked up and we have seen some shortages going out a little bit, so prices have stabilized in a lot of areas but just overall activity has picked up.
Matthew Sheerin - Thomas Weisel Partners
Okay, and where are you seeing shortages?
Arthur Nadata
In some of the memory stuff.
Matthew Sheerin - Thomas Weisel Partners
Memory, okay. And then just on the gross margin, which was down and you explained why -- do you expect it to be in the low 14s for a while, until we start to see North America improve more significantly?
Arthur Nadata
We do see it there but we have put some programs within the company to start to raise our margin in some of the demand creation areas and in some of the shortage areas. So we hope that will be on the lower end, if anything.
Matthew Sheerin - Thomas Weisel Partners
Okay, and are you seeing pricing pressure, meaning among other distributors just chasing business because a lot of it is just turns business because there’s not a lot of backlog -- is that another reason for the margin pressure?
Arthur Nadata
Yes. I mean, you know, a lot of the business is not that -- the demand is gradually increasing but still the bulk of the increase I would say is gaining share, is us taking share from -- you know, in certain lines, particularly in North America and APAC.
Matthew Sheerin - Thomas Weisel Partners
Okay, and I know you don’t give guidance and I appreciate that but do you think the May quarter might have marked the bottom here in terms of your revenue where you are going to start seeing in the -- I mean, if you look at the book-to-bill, it sound positive but book-to-bill doesn’t -- if you talk to other companies, it doesn’t seem as meaningful now as it has been in past cycles because lead times are so short, you don’t really know if the orders are real or not. But do you think that this is sort of the bottom here for you?
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