Question-and-Answer Session
Operator
(Operator Instructions) Your first question today is from Doug Freedman with American Technology Research.
Doug Freedman - American Technology Research
Hi Steve. Thanks so much for taking my question. Clearly it is a tough environment out there. Can you give us any color on where you see turns for the quarter? How are you managing? Whether you are seeing any pockets of inventory? It appears we are trying to pull down production at the same rate as demand is coming in. Do you think you are doing a good job of balancing that?
Steve Sanghi
I look at this as a more of a demand destruction and inventory correction. Although any time you have reduction in demand, then any inventory anybody has appears multiplied and it looks like more inventory than they need. But the cause of that is not high inventory anywhere at our customers or channels. The starting point from this is really reduction in demand because of credit and other financial economic issues. We are managing it realtime and have taken swift action to allow reduction in our expenses, reduction in all sorts of discretionary travel and other expenses, and to reduce the inventory build by scheduling a two-week shutdown in our factories here in fab, and all the other actions I described.
Doug Freedman - American Technology Research
Thank you so much.
Steve Sanghi
You're welcome.
Operator
And our second question is from John Pitzer of Credit Suisse.
John Pitzer - Credit Suisse
Good afternoon, Steve. I appreciate your taking the question. Given how volatile the environment is with your own business, how comfortable are you with able to making a good evaluation assessment on the Atmel acquisition? If your partner ON were to pull out of the acquisition, would you still be committed to moving ahead with it?
Steve Sanghi
Regarding Atmel, we have tracked them for a long time and understand their business. We are in several of those businesses like microcontroller and eSCORE. We have not been provided any due diligence so far to really be able to confirm our assumptions and we are hoping for Atmel to come to us and want to get into meaningful negotiations and provide us some due diligence, which they have not been able to.
While this environment is rapidly changing, we believe the Atmel acquisition is a long-term opportunity to build value for our shareholders, and it will take several months for us to acquire, even if it turned friendly tomorrow. So, I think the short-term severe reduction in demand that we are seeing is really not meaningful in terms of analyzing the Atmel acquisition.
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