Question-and-Answer Session
Operator
(Operator Instructions) Our first question today comes from Terence Whalen – Citigroup.
Terence Whalen - Citigroup
My question relates to the sustainability of the end-demand and the strong order pattern that you’re seeing for computing. I know that the builds particularly around notebook and some of the CULB platforms have been generating good order strength for you. What are some of the leading indicators you’re looking at to determine whether you get carry-through phases of orders as ODMs restock on that and can you just talk a little bit about your expectations and what you see in your rolling forecast and ordering patterns to give us any information regarding the texture of end demand heading into the September/October time frame.
Mark S. Thompson
We have first of all conversations through the entire supply chain for computing, starting with microprocessor, with the OEM in the middle and then the ODMs at the production level. It’s a very lean supply chain right now, and so I think the visibility is low but the inventory circumstances I think are pretty healthy, and our lead times are quite short, so we have the ability to adjust our production to align with whatever the demand happens to be, but the ability, I don’t think anyone is really in the position to provide a lot of long term visibility to that marketplace.
Terence Whalen - Citigroup
What is your expectation for distributor inventory in the third quarter embedded in your guidance?
Mark S. Thompson
Embedded in our guidance is an expectation that we will reduce it further but probably not dramatically, something in the $5-$10 million range, which if you take the estimate that we offer to the mid single digit increase in point of sale would land us somewhere between ten and eleven weeks.
Operator
Your next question comes from the line of Ross Seymore – Deutsche Bank Securities.
Ross Seymore – Deutsche Bank Securities
I guess from the revenue guidance side of things you gave a lot of math versus consumption etc, but if I look at last quarter, you had about $250 million in backlog and you ended up shipping turns of close to $30 million bucks roughly, and you burned a lot of inventory. Why are you assuming that the turns right would slow from an absolute dollar perspective heading into the third quarter?
Mark S. Thompson
Ross, I guess maybe the best way to put it is, we’re not really assuming anything. We’re really trying to calculate outcomes of certain events so if you look at the book ends of the estimates that we offered, we simply flipped the amount we booked so far which is about two and a half weeks, added that which is about five weeks, and if this was a normal Q3, you would expect that most of your bookings would have occurred in the first five weeks of the quarter. And now, we also know that the environment of course is still a bit odd, and we are trying to figure out the new pattern, and it is a seasonal industry, so we acknowledge the possibility, although we have not seen in the order patterns that there could be a role off that would occur if people saw that their on re-sales for example weren’t occurring, so it’s a very lean supply chain, and I think people are reacting rapidly to any disequilibrium, so it was really a framework for outcomes, not a prediction of the future.
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