Question-and-Answer Session
Operator
Thank you. (Operator instructions) We'll go first to Min Park with Goldman Sachs.
Min Park – Goldman Sachs
Great. Thank you. Just a few questions, please. First, I'm trying to get a better understanding of why your embedded segment met your sequentially up revenue target given the longer lead times for these products, was that a healthy percentage of the revenue already booked at the early part of that quarter and did orders just simply fall of the cliff after the first month or so?
Mike Rockenbach
Hi, this is Mike. You’re right. We do tend to have a lot of the business booked at the beginning of the quarter for the ASIC business because it is pretty early in the cycle and we did see less demands at the last – really at the tail end of the quarter and what we think is going on, it's a little hard to tell because we are a component within a system, but what we think is going is you are seeing tighter budgets in 2009 and relatively soft demand. At the same time, we’re seeing that contract manufacturers are living on pretty tight margins and they're increasing their focus on managing their own inventories. So the combination of those two things really ended up hitting us at the end of the quarter a little bit more than we expected and I think we did see maybe a little bit of some push outs by contract manufacturers at the very tail end to bring down their inventory levels and I think that was probably the primary impacts within the quarter.
Min Park – Goldman Sachs
Okay. And then just staying on the topic, we understand how mix can be hurting your revenue growth, but as it relates to the new design wins that you spoke about in the past, are you just seeing a slow ramp of the new products or just wholesale push out of launched it?
Jeff Benck
Hi, this is Jeff. We have seen some buying pattern shift from our end market fibre channel offerings to SAS and SATA. We have new products in the pipeline and some design wins to participate in that, but as we have stated before, some of those designs did move out. When we look at it now there is clearly a number of products that we have in development, some new ASICs in fact we referenced in the script that really gets after the SAS and SATA opportunities and help customers decide [ph] whether they still have fibre channel back end or if they want to bridge to the new technology, but those offerings won’t be out until later this year, so we didn’t see any benefit from that in the current quarter.
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