Question-and-Answer Session
Operator
(Operator instructions) And we will go first to Doug Reid with Thomas Weisel Partners.
Doug Reid – Thomas Weisel Partners
Thanks. Congratulations on a nice quarter. I just wanted to get a sense on gross margin within components, so I know that you don't break out exclusively gross margin therein, but could you give some color behind just gross margin trends then for those two areas?
Charles Liang
Yes. Basically with new product launch like Nehalem and like our 2U Twin2 with GPU you know new product always provide us better margin. And Howard, (inaudible).
Howard Hideshima
Yes, Doug. As we talked about before between servers and components sales, there can be as much as a 5% to 10% differential depending upon the application you know as far as what types of offering we are putting together and how complex that box may be. But all product lines basically were very strong for us and gross margin increased.
Doug Reid – Thomas Weisel Partners
Okay, great. And then just quickly on the data center sales, kind of fairly steep drop-off but wondering if you could provide some visibility into what you're seeing now and your expectations of the September quarter from that segment?
Howard Hideshima
Yes, Doug. This is Howard again. You know like I said, we have always said it is kind of project by project based, so you will see fluctuations in that. I think previously (inaudible) you will see 7%, it was 12% prior quarter and about 6%, 5.8% this quarter. So you will see project by project basis and we believe we have great technology and that will be appealing.
Doug Reid – Thomas Weisel Partners
Okay, great. Thanks.
Operator
(Operator instructions) And we will go next to Glenn Hanus with Needham & Company.
Glenn Hanus – Needham & Company
Good afternoon guys and congrats on your quarter. Maybe if we settle back to gross margins for the second, could you talk a little more about the puts and takes driving gross margin and the trend going forward here, what was the extent of price – competitive price pressures in the quarter and you know that was probably offsetting gains you were seeing from new products. So could you talk more thoroughly about the puts and takes on gross margin this quarter and what we should think about it in our models going forward?
Charles Liang
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