Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Amit Daryanani - RBC Capital Markets.
Amit Daryanani - RBC Capital Markets
Adam, I am looking at the press release. You guys talked about stabilization in the market. I think historically September quarter has been flat to up a little bit versus we’re talking about down 1% at the mid point. Can you just talk maybe beyond just being conservative if there is something from some of the end-markets that’s driving the sales down sequentially?
Adam Norwitt
Amit, as I mentioned, we believe that there is some seasonality in the third quarter in those markets where we have traditionally in the past seen seasonality, especially the military aerospace and industrial markets which tend to be more North American and European focused. In those markets, we certainly see seasonality. I think Diana mentioned as well that the books to bill in those markets we saw was not positive in the second quarter, which really led us to believe that we would see that traditional seasonality. I think in the other markets as well where you would normally see an uptick, for examples in the mobile phone market, we don’t necessarily that there will be the same significance of positive seasonality in such a market.
Amit Daryanani - RBC Capital Markets
Adam, the cash generation was really again this quarter. Your cash balance, at least when I look at historically, has only once been higher than the $221 million we’re sitting on this quarter. Given that things are starting to stabilize, is the buildup in cash just a sign of keeping some gunpowder dry for acquisitions in the back half or how should we be looking at that?
Adam Norwitt
I think we’re always keeping our eye out for acquisitions, and we continue to have an acquisition pipeline that we manage very diligently and aggressively. It doesn’t mean necessarily that there would be one in the third quarter, and I think as we’ve always said it’s impossible to predict the timing for those acquisitions. I think Diana and her team manage our cash very carefully, and we’re very proud of the cash generation in the quarter, and this is really outstanding cash flow generation in the second quarter--$142 million nearly double our net income, and this came from an ongoing focus throughout the corporation on working capital management in addition to really having our earnings show real cash from those earnings. So I think we’re very proud of that. It’s not a change in how we manage our cash balances. It’s really rather a reflection that it was a very, very strong performance in the quarter.
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