Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Chris Blansett of JP Morgan. Please proceed.
Christopher Blansett – J.P. Morgan
Real quick starting off, when you look at your guidance if you gave that on a pro forma basis, K.C., could you tell us what that would be?
Kevin C. Eichler
Well I called out the restructuring which was $1 million in gross margin and $1 million in operating expense. I also have the $3.3 million of amortization that I know that several people pro forma out and I’ve also called out what the stock option charge was last quarter and I would think it’s relatively comparable this quarter as well. So those are really the charges we’re looking at that would be comparable to the one-time charges for this quarter.
Christopher Blansett – J.P. Morgan
And then is the second quarter pretty much going to be the end of these charges or will they kind of trickle on for a while?
Kevin C. Eichler
We announced it was going to be about $16 million when we announced the restructuring at the beginning of the year and as you can see we’ve taken about $13.5 this quarter, I’ve just talked about another $2 million. So fundamentally most of the charges have been taken in Q1 and in Q2. There will be some that will come through in Q3 and Q4 but you’ve seen the majority of the charges related to the restructuring that we’ve already announced.
Christopher Blansett – J.P. Morgan
One more quick one, looking at your book to bill it’s pretty good. Your guidance doesn’t quite reflect I guess a comparable level of turns in business so it sounds like some of your clients are booking in advance. Why is this tied to maybe your manufacturing being more quickly transitioned to China? Just trying to understand the dynamic there?
Lavi A. Lev
We are not providing guidance for book to bill. Obviously the revenue this quarter was the result of booking of the last quarter or two and we are guiding up, we see the business starting to pick up a bit after a pretty slow start in Q1 and we’re pretty comfortable with that.
Kevin C. Eichler
The other thing I’d point out is we had some DCG revenue in the first quarter and we will not have any DCG revenue in the second quarter so we’re actually having a little stronger growth than is reflected in the numbers because of DCG being in the first quarter.
- To read the full transcript on Seeking Alpha, click here »
