Question-and-Answer Session
Operator
Thank you. Our first question will come from Ross Seymore with Deutsche Bank. Please go ahead.
Ross Seymore - Deutsche Bank
Thanks guys, can you hear me alright?
Mark Frey
Yes.
Ross Seymore - Deutsche Bank
Great. Looks like the revenues were pretty much in line with what people were thinking but on the margin front, I am little confused, as to why the gross margin guidance would be flat, if utilization is going up, you have more System General revenues going up, etcetera?
Mark Frey
Well, Ross, the gross margin doesn't go in complete lockstep with the sales. The early cost of the sales in Q2 is actually product build in Q1 at lower utilization. So, you get a bit of lag impact on the efficiency of the costs involved. But then we would see that as run through and in a position for Q3 to accelerate rapidly.
Ross Seymore - Deutsche Bank
So, the mix from the System General side doesn't offset that lower utilization that blends through from the first quarter. Is that generally the idea?
Mark Frey
Yes.
Ross Seymore - Deutsche Bank
And then the second question, also margin related, would be on the OpEx front. Looks like it was a little lower than expected in the March quarter, but higher for the June quarter. Can you give us an idea how much System General was in each of those two quarters and if that explains that delta?
Mark Frey
System General is in the $2 million to $3 million range and that's kind of what we pick up. Going forward we are not going to isolate System General. But, yes that is what accounts for the Q2 guidance, and there is a little bit of internal OpEx growth built into that as well, obviously.
Ross Seymore - Deutsche Bank
Okay. Thank you.
Operator
Then move on to Craig Ellis with Citigroup. Please go ahead.
Craig Ellis - Citigroup
Thank you. First, a clarification. You mentioned that there were three dynamics that impacted Standard Products' margin in the first quarter, mixed utilization and pricing. Can you just break out the relative magnitude of those three?
Mark Frey
Sure. Mix and pricing is around 100 to 150 basis points and obviously the most important was utilization. And that's because, number one, the sales were down significantly. We did also lower our inventory. So the production build for SPG was pretty dramatic relative to Q4, where we had some sales drop off, but we actually built a little inventory.
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