Question-and-Answer Session
Operator
(Operator instructions) We have a question from Craig Berger with FBR. Your line is open.
Craig Berger – FBR
Hey, guys, phenomenal job. Wow! I guess as we look to the second quarter obviously you guys are ramping a lot. Is that – obviously you've got a lot of product cycle drivers, but apart from that I mean are we still in an industry burn in inventory burn situation as you look out there? Are you shipping in line with what you think end consumption trends are as of the second quarter guidance or is there more catch up to be had going forward?
Bill Bock
From what we see our customers the inventory burn has come to an end. And by and large we believe we are now tracking to end user consumption. There are a couple of exceptions to that, one of them being the PND market. That still has some inventory and we don't expect that segment to recover fully until Q3, but in general I would say the inventory contraction is largely behind us.
Craig Berger – FBR
And just as a follow-up on the audio business, can you help us understand how big handset is versus how big some of the other components are, maybe what the contribution is from your new AM/FM tuner, how you see that playing out. I guess I am trying to understand the sustainability of that given the various moving pieces in that business. Thank you.
Bill Bock
So the handsets represented roughly two-thirds of the audio revenue in the quarter. As I indicated we believe we have gained some market share in the quarter. Our products higher value products continue to see good adoption cross the customer base. We benefited from Samsung's success in the quarter as they shipped more low-end phones to regions like India, South America and China. We're seeing recovery in handsets in latter part of the quarter, particularly in March. I think all of the advantages that I've given you the examples of during the prepared remarks, continue to support us hanging on to our share. And in some instances as we have done in Q1, expand our share. The really positive new side we've seen in the quarter in terms of design win have come from the consumer audio segment. While we have grown our AM/FM revenue modestly in the quarter we are seeing a significant increase in design wins for our AM/FM products particularly in the Chinese consumer audio market, our product has simply become the solution of choice.
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