Question-and-Answer Session
Operator
(Operator Instructions) The first question is from Mark Sue of RBC Capital Markets.
Joe Spec - RBC Capital Markets
Hi, guys. This is actually Joe Spec [Ph] calling in for Mark.
Tom Steipp
Hi, Joe.
Joe Spec - RBC Capital Markets
Hi, how are you? Just a couple of questions; one, the sequential decline in gross margin, I know the revenue mix, it sounded like there was some delays in push-outs, but on the gross margin side, was any of that volume base or was it more mix?
Justin Spencer
Hi Joe, it’s Justin. The change, you’re referring to the last quarter right?
Joe Spec - RBC Capital Markets
Correct.
Justin Spencer
The primary driver was cable. Last quarter we had a very high mix of cable volume, a record quarter for us and really built on a healthy, a very strong backlog that we had ending the fiscal year and that drove our margins up significantly. So, we returned back to more normal levels this quarter as a result.
Joe Spec - RBC Capital Markets
Okay and then on that, can you give us a little bit more color on the cable product outlook? We’ve seen some of the MSOs come out and say they are cutting CapEx in 2009 and I was just wondering if you have any color given we’re sort of at the month end already.
Tom Steipp
Well, given the current economic environment and the uncertainty associated with that as a disclaimer, I think there certainly is pressure on CapEx spending around all of the competitive markets, between cable and telecom.
Having said that, to a large extent our DTI products are tied to DOCSIS 3.0 and the modular CMTS that tends to be one of the stronger competitive advantages for a lot of the cable operators; so not to say that we don’t have concerns about it, but just to say that at least in our conversations with them there continues to be a strong interest in them advancing the capabilities of their networks and where it’s modular 3.0, we will be a part of that solution.
Joe Spec - RBC Capital Markets
Okay, thanks. Just I missed the backlog number. Do you remind repeating that for the quarter?
Justin Spencer
Yes, $50 million.
Tom Steipp
$50.1 million.
Joe Spec - RBC Capital Markets
Okay, thank you.
Operator
Your next question is from Mike Crawford of B. Riley & Co.
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