Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Tim Luke – Unspecified Company
Tim Luke – Unspecified Company
I was wondering if you could provide a little color in terms of the broad environment. It sounds like you were saying that the first few weeks of the quarter had got off to a fairly steady start. Is that correct? Perhaps you could just clarify what you believe your backlog did directionally, whether it was up or down in the quarter and with respect to the wireless business in particular it sounds like it was strong last quarter and it’s guided up again in the coming quarter. Is that just Chinese TD [inaudible] that is providing the incremental list and how do you see that flowing as you look into the beginning of 2009?
Jon Olson
We entered the quarter with a stronger backlog then we entered the previous quarter so that’s point one and we’ve had a couple of pretty solid weeks of turns in the first couple of weeks of the quarter as well.
If you just looked, and you would normally expect our December quarter to be a little more frontend loaded just because of the holiday slowdown that typically happens in terms of the shipment pattern. So if you just use those data points solely, you’d say wow things are clicking on all cylinders and things are going really well.
However in trying to reach out over the last two weeks to understand more current information from our customers, there’s a lot of confusion out there of what’s really happening. We have had some customers in the communication space that have signaled to us that they’re going to cut their builds.
We’ve had others who have said absolutely no, I’m set. I think I’m going to take all those products this quarter so there’s a lot of mixed signals going on and certainly erring more on the fact that people are saying things are okay then the ones that say they’re concerned.
So we’ve seen pockets of communications that have backed off and pockets in test and measurement that have backed off from us in terms of saying we’re uncertain about the future. So as a result of that, that’s why we took the position we did in terms of our guidance is going below seasonal and reducing our backlog, our turns required to hit our number is a fallout of that to take the posture that we are, its not clear what’s going to happen on the macro environment as we unfold through the quarter.
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