Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Craig Ellis of Citi.
Craig Ellis – Citigroup
Thanks, and good morning, guys. Congratulations on the strong results. The first question, Keith, you mentioned the synergies that you are already starting to harvest, can you just give us a little more color on where that's coming from whether it be cost of goods or the operating expense lines?
Keith Jackson
It comes from both. Right now the first couple of weeks that are reported in this quarter, that was more from OpEx savings than COGS, but as we get through the end of the year, I expect the COGS line will be the dominant line –
Craig Ellis – Citigroup
Okay. And then as the follow question, we've been looking for the Gresham fab to ramp up with on product this year. Keith, can you give us an update on how we should look at we think about 2Q through 4Q?
Keith Jackson
Yes. It should continue to ramp. We have gotten now two of our analog processes in there and we are indeed adding new products every day from the ON portfolio. And so, it's on track from the last comments I made. The acquisitions from AMIS and ADI really kick in Q1. So, everything we've put forward before on the on basis remains intact.
Craig Ellis – Citigroup
Thanks, guys.
Operator
Your next question comes from the line of Craig Berger of FBR Capital Markets.
Craig Berger – FBR Capital Markets
Hey, guys, good morning.
Keith Jackson
Good morning.
Craig Berger – FBR Capital Markets
Nice job. A few questions here. First of all, on the PC side it looks like even excluding the ADI acquisition that business was flatter, slightly up sequentially in Q1. Could you tell us what's driving that and also talk about some of your SEC investments or Solutions Engineering Center?
Keith Jackson
Sure. Yes, we continue to gain share basically in computing without question. In the desktop, we are expecting to have the significant majority of next-generation motherboards that will be ramping in the second half for our Vcore Controllers and continued good penetration on all the other products. So, we are actually pretty excited about that and so, it was flat up for the base business and that was entirely new designs ramping. The SECs have been very successful for us. I'm very excited about that. In each of the areas we put those, the design win count in the new products that flow into those markets have accelerated dramatically. We'll be talking about some of those specifics in numbers in our Analyst Day upcoming presentations.
- To read the full transcript on Seeking Alpha, click here »







