Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Avinash Kant with Broadpoint Capital.
Bob Wachob
Good morning.
Avinash Kant -- Broadpoint Capital
Quick question. Regarding margins first, margins, you saw some improvements here at these levels in revenues. Should we expect these margins to kind of continue to grow through the rest of the year after June quarter?
Dennis Loughran
Yes, we expect -- although we don't have any firm forecast, we would expect that the Q3 would be higher in sales than Q2 and therefore, also higher gross margins.
Avinash Kant -- Broadpoint Capital
So, basically Q2 at this point you see as the bottom quarter for the full year, right?
Dennis Loughran
Yes, and that has been typically the case for the last few years once cell phones became a significant part of our sales. And as they are declining, of course this effect will become smaller. If you recall last year, there was about a $15 million decline in sales from Q1 to Q2, and this year, we are looking at $2 million to $5 million. By the same token, last year, Q3 was about $10 million greater than Q2. I wouldn't expect the effect to be that great this year.
Avinash Kant -- Broadpoint Capital
Okay. So, when you talk about Q2 being the bottom, is that just seasonality that you are talking about or you do have visibility for this year and you do see things improving?
Bob Wachob
We believe things will improve. However, we would expect Durel to every quarter be lower than the quarter before for the rest of this year.
Avinash Kant -- Broadpoint Capital
And Bob, if you could elaborate a little bit about one of your comments you made about the inventory at your customers.
Bob Wachob
Yes, one of the disk drive array manufacturers only forecast apparently once a quarter and then builds to the forecast. They are not going to take any product for about a month. And some of the cell phone people were pretty slow in recognizing that their inventories were rising and have therefore slowed down considerably.
Avinash Kant -- Broadpoint Capital
So this impact, is it coming from one segment of the market or you are talking about a broader segment, is it just disk drive guys or is it more --?
Bob Wachob
No, it is scattered. It is one person here, another person there. It is an individual company and not market oriented. The bigger the company, the more likely it is that they are slow in recognizing changes.
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