Question-and-Answer Session
[Operator Instructions].Our first question comes from Uche Orji from UBS.
Uche Orji - UBS
Thank you very much. I know since you have gone through us all the factors affecting the current quarter, but between your last announcement and the current guidance, can you point out more specifically what really changed to literally current significant sequential declining guidance?
Tunç Doluca - President, Chief Executive Officer and Director
Okay, well, if you look at when we... our timing in terms of when we provided guidance the last time, it was very early in our fiscal quarter of Q2. And we essentially relied on the forecast at the time as well as the bookings we had in Q1, which were down 6% and our opening backlog was down about 8%. So that was the data we had; it was what we had received as forecast from our business units as well as our sales force to provide guidance very early in our quarter.
However as the quarter progressed, we noticed that our booking levels dropped sharply and we also did another poll of our customers, both from our business units and from our sales force, and decided that overall there was a decline in the demand from our customers. So that's the reason we essentially had to reduce our forecast further.
Also, as we also noticed that many of the small customers actually began to reduce their booking levels before our large customers did. And therefore, the news from the large customers came later because typically they have shorter lead times provided to us and that contributed as well.
Uche Orji - UBS
Okay, that's helpful. If I look at what you are doing, can you just help me understand where utilization rates stands today? Where you'll be exiting with utilization rates by the end of the December quarter? And what that will mean for your inventory right now? I know you said you are taking all these actions. But if you can just, let me know. And also while answering that, if you can also tell me where the general inventory is right now as well that would be helpful? So three points in there; one is utilization rates now where you'll be? What it means by inventory and what it means for the channel situation? Thank you.
Tunç Doluca - President, Chief Executive Officer and Director
Okay, I'll take part of that and Bruce can answer the rest of it. But in terms of our utilization rates, they remain relatively unchanged from the previous quarter at about 70%, 75% range.
- To read the full transcript on Seeking Alpha, click here »
