Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Aaron Husock representing Morgan Stanley. Please proceed.
Aaron Husock - Morgan Stanley
Thanks for taking my call. I guess to start, could you give us a little more detail on the mix in the quarter and where that’s going? I guess last quarter, you were around two-third VGA, 10% 2-megapixel and the rest 1.3. Where did that come out in the April quarter and where can that go in July?
Peter Leigh
As I indicated in my prepared remarks, VGA was up a little bit in the quarter, around 70% and the 1-megapixel and 2-megapixel shares were virtually unchanged. We do believe that 2-megapixel should increase as a percentage of revenues in the upcoming quarters.
Aaron Husock - Morgan Stanley
How high could 2-megapixel be as a percentage of sales in the July quarter?
Peter Leigh
We don’t break out the guidance to that level of detail. Let’s just say that directionally the trend is very positive.
Aaron Husock - Morgan Stanley
Okay, and I was a little surprised to see that you weren’t active with the buy-back in the quarter. Can you give us an update there? Do you think you will be buying back some stock this quarter?
Peter Leigh
Well, Aaron, as you know there are a large number of factors that we take into account in deciding whether and when to buy back stock. The fact is we don’t comment on reasons for or engage in speculation about our share of repurchase actions.
Aaron Husock - Morgan Stanley
One final question -- there’s been some talk in the market about a shortage of image sensors for the PC and notebook market in China. Can you just comment on that, what you are seeing there? Is there a shortage and do you guys have adequate supply?
Ray Cisneros
That’s an interesting comment but no, we don’t see that. Right now, we feel very strong about our position in the PC cam and laptop market, and so we can’t really confirm that and we don’t see it.
Aaron Husock - Morgan Stanley
Thank you.
Operator
As a reminder, please limit yourself to one question and one follow-up. From the line of American Technology Research, the next question comes from Doug Freedman. Please proceed.
Doug Freedman - American Technology Research
First of all, congratulations on sort of seeing the bottom and the turnaround here. If you could go into a little bit of detail on how quickly we can expect to see the gross margin improvement start to flow through. Clearly there’s a bunch of inventory there and if you could let us know what you are seeing as far as the value of that inventory.
| TRANSCRIPT SPONSOR |
- To read the full transcript on Seeking Alpha, click here »
