Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And we will take our first question from Ross Seymore, Deutsche Bank.
Ross Seymore - Deutsche Bank
Thanks guys and congrats on the strong earnings power. A couple of questions, on the OpEx side of things. How should we think about OpEx longer term in the growth rate in that line versus revenues?
Mark Frey
Ross, as you know our target for OpEx is about 20% of revenue and we expect to get pretty close to that next year.
Mark Thompson
Let me also embellish a little bit on Mark's comment. I think pretty consistently stated in and have shown progress toward also shifting the mix, so we've both been targeting a 20% OpEx level but also steadily reducing G&A and increasing R&D and we expect to increase that trend in 2008.
Ross Seymore - Deutsche Bank
Great. Then the follow-up on that, the mix on the revenue side went favorable as well, the inventory that you guys burned on the APG side both internally and it sound like in the channel are you in both cases down to where you want to be or is there still some of the analog accesses in the channel or again on your books.
Mark Thompson
We are close to where we want to be, but we have probably another quarter or two trimming to do their but the majority of the realignment is complete, Ross.
Ross Seymore - Deutsche Bank
Great and one quick follow-up. You have talked about inventory management, you did a very good job on it across the board. How would we think about the seasonality of revenues as we go into the first quarter given the fact that you don't seem to be following the kind of traditional trend of stuff in the channel a little bit the back half of the year and having to burn it in the first half?
Mark Thompson
Well certainly we are trying to learn from past experience and to the extent in the past inventories went off, it was misalignment rather than deliberate placement of inventory. So we recognized that particularly in the very end of December point of sale is quite hard to predict, because often people do shut down, sometimes not planned between Christmas and New Year. And so we deliberately positioned ourselves so even in the event that's on the high side of expectation we should be comfortably in the middle or even on the low end of our channel inventories which of course will position us well going into 2008.
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