Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tim Luke – Barclays Capital.
Tim Luke – Barclays Capital
I was wondering if you could provide some color on how you have gained linearity as you went through the calendar fourth quarter and how you see the beginning of this quarter with January or February showing any signs of any improvement from the pressures that you seen in November and December.
Separately, I was wondering how we should think about you planning your operating expenses given that you are suggesting that you think the full year calendar 09 you anticipate actual revenue growth year-over-year. How you are thinking about your headcount and your operating expenses going forward and when would you anticipate moving back towards a break even level in terms of net income.
Ralph Quinsey
Tim, first of all, as far as linearity, absolutely saw some improvement in the first part of January as compared to the darkest days of Q4. As I’m sure you’re aware, we went into Q4 and as the quarter progressed the situation deteriorated. We saw a lot of activity from our customers as far as request for backlog rescheduling or push-outs largely in the handset and the wireless LAN area. It’s in an improved condition now as opposed to that period.
As far as operating expenses, we are looking very closely at expenses throughout the organization, not just operating expenses, but also our manufacturing costs. Our strategy is two-fold. We want to be very prudent as far as where we spend money and really tighten controls, but we also want to be very focused as far as investing in things that give us relatively fast return on that investment. And so, we’ll watch it very closely and be responsive to changing conditions in the market. I do think there’s opportunity in the second half that I don’t want to miss.
As far as revenue break even, we’re not guiding beyond Q1, but I expect Q2 to be much improved from Q1 and to be a profitable quarter. Steve, you want to add something?
Steven Buhaly
In terms of operating expense throughout the year, we continue to have an objective to have our operating expenses at 25% of revenue on a non-GAAP basis and we will be looking to work our way back to that number as the revenue picture improves.
So we will be very deliberate and cautious with operating expenses until we get back to that point.
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