Question-and-Answer Session
Operator
Thank you, sir. Ladies and gentlemen, at this time we will begin our question-and-answer session. (Operator instructions) Our first question is from the line of Vernon Essi with Needham & Company.
Vernon Essi – Needham & Company
Thank you very much. First off, Thurman, good job on the balance sheet on the asset management side. I'm wondering specifically what steps you took to keep the inventory in such control while everything was getting slammed on the brakes around in the industry. Anything particularly you'd highlight that you did to – you're definitely separating from a lot of other companies on that front, so I'm just curious what you did.
Thurman Case
It's a normal course for us to manage our inventory levels, and not only recently but over the last few years, we've taken a lot of steps in improving our supply chain management tools and organization and it's paying off. And knowing that there was some weakness in the industry, we really watched that on a week-to-week basis and made sure that we kept it under control the best that we could.
Jason Rhode
And Vern, I appreciate the question because the goal that we had internally for that was about that at the beginning of the quarter when we thought revenue was going to be a lot higher, but especially appreciative of the supply chain team that did an outstanding job keeping that under control.
Vernon Essi - Needham & Company
This is the obvious questions we're all going to have, but how do you feel – I didn't hear a lot of color on the channel too much – but where do you feel you're at in terms of channel inventories and what sort of supply you see going into the post-Lunar New Year?
Thurman Case
We're in pretty good shape. Obviously in my opinion that was a pretty significant portion of our issue last quarter, and I think we actually said this at some point that contract manufacturers, really any manufacturer as well as especially distributors – and keep in mind we're on a POP basis in Asia – they were all being extremely cautious with inventory. They were all in a position of trying to drawdown their inventory during the quarter as well.
So actually when we look at it, we're an aggregate at the distributors particularly in Asia, we're an aggregate somewhere in the six to seven turns around. We don't feel too bad about that. Obviously you're always working that issue and you've always got some guys that are a little higher and some guys that are a little lower. But overall we feel very comfortable with our position in the channel with respect to inventory.
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