Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Dan Morris with Oppenheimer & Company. Please go ahead.
Dan Morris - Oppenheimer & Company
Hi. I'm just calling in for Rick Schafer. First of all, the revenue guidance was pretty robust, basically looking at around 18% sequential growth at the midpoint, could you talk a little bit about your visibility there, maybe, in terms of backlog or turns requirements?
Jason Rhode
Yes, sure, that's a good question. Yeah, the backlog coverage of that number is very good. We don't give out a specific percentage, but it's actually higher typically than we would see this normal at this time of the year relative to revenue higher than it was same time of the quarter one quarter ago.
If anything, I would say, that the revenue guidance was tampered a little bit relative to the backlog just in light of the overall economic conditions and all that in. And also, recognize we're enjoying and preparing for a pretty significant ramp in revenue this fall.
So, that always makes you a little bit nervous when it's all brand new stuff and there's a lot of exciting stuff happening there. So in any event, the visibility into that revenue is very good from our perspective.
Dan Morris - Oppenheimer & Company
Okay. So I guess what you are saying is that the incremental growth there is mainly coming from the newer products, like portable audio specifically?
Jason Rhode
Yes.
Dan Morris - Oppenheimer & Company
And I know you talked about portable audio ramping with multiple tier-1s, is that also included in this next quarter?
Jason Rhode
Yes. We have got backlog for a couple of new customers and on new products. So it's pretty exciting from that product line. That team continues to execute very well, all the way across the board from engineering, all of the different functions, and marketing and sales. It's definitely a very good effort that these guys are putting forward.
Dan Morris - Oppenheimer & Company
Okay. So I mean, you’ve talked about $20 million as being kind of a revenue target for portable audio in fiscal '09. Is that still a good number? Is that looking a little more conservative there?
Jason Rhode
I'd say it's probably on the conservative side.
Dan Morris - Oppenheimer & Company
Okay. And then turning to the gross margins, it looks like guidance -- those margins are coming down meaningfully. How much of that is just a mix shift towards portable audio? Or is there any impact from, say, pricing pressure?
- To read the full transcript on Seeking Alpha, click here »
