Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Charles John with Piper Jaffray.
Charles John - Piper Jaffray
Firstly, congratulations on the discipline of the OpEx in the face of this really weak demand out there. It’s a great job there. Maybe I will just start with something we have been picking up from some of your competitors. What they have indicated is just the overall lowering in terms of inventory levels at some of the key OEMs, but just looking at your results it looks like you have done slightly better with them, especially with Nokia Siemens and Alcatel Lucent. So just curious, maybe you could give us some color on what your discussions with them have been like, and what you are seeing out there in terms of overall inventory levels.
Ron Buschur
Charles, we actually have, as you indicated, had an improvement in our inventory levels. We do believe that the OEMs have managed their inventory levels pretty well during this slowdown as well globally. Looking forward, we feel pretty confident that we should be able to continue to maintain and improve upon our industry leading inventory turns and looking at how we can continue to reduce inventory globally. The OEMs are holding fairly stable in this difficult environment, and we are pretty pleased with the discipline that the team has put in place here internally, managing our inventories globally.
Charles John - Piper Jaffray
So Ron, looking into the second half, do you think it's got to the point where they would have to procure additional equipment from suppliers or do they still have enough of a stash where they can keep taking it down lower with some of your sales getting impacted even into Q3?
Ron Buschur
I think, a lot of it really depends, Charles, on the end customer itself. As you know, a lot of the operators are slowing down their deployments in some of the regions that were accelerating at the beginning of the year. So I don't believe there is a lot of inventory sitting in the channels of the OEMs. So I would hope, and we believe that we should see some improvement here in the second half now. I think that with that pick up, obviously that will allow us to move some of our inventory and actually improve upon our sales moving forward.
Charles John - Piper Jaffray
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