Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Uche Orji - UBS
Uche Orji - UBS
Let me ask you a question about the [inaudible] your bookings, I just wanted to understand the [mid control] base, just the momentum in bookings and essentially what drove that, and within that if you can also comment on connectivity which continues to grow strongly. If you can also explain what’s driving that growth.
Ron Slaymaker
I don’t unfortunately have data for you on kind of month-to-month or week by week booking linearity other then the data we provided you where bookings were strong in the quarter. We had a 1.08 book to bill and certainly as we indicated we have an above seasonal outlook for our business overall.
But beyond that I don’t really have any input. On connectivity I would say it’s a combination of factors. Certainly the fact that Smart Phones and other advanced handsets are having a lot more connection options or features beyond just the cellular connection, these include of course Bluetooth which is highly penetrated in handsets but especially WiFi and GPS functionality where TI has an especially good position as well.
So it’s a combination of the feature set pervading more handsets and TI gaining share within those features. So a combination.
Uche Orji - UBS
My follow-on will be flatly a different question in the sense that I’m asking about your acquired [inaudible] fab, your operating margins for analog are still not where we saw them in 2007 and when your acquired this fab I don’t know [inaudible] rates are, but what do you need to do, how will this help you drive the operating margin for the analog business. Should we expect that to structurally take operating margins higher then the levels we saw them in 2007 and when should we expect this fab to become really operational for you and so kind of walk me through the thinking behind the acquisition of that fab and how you will drive margins.
Kevin March
I’ll go ahead and offer some comments on that, as we’ve announced the equipment that we’re putting into our fab will be 300mm equipment. Up until this point in time our analog products have all been on 200mm wafers. Generally speaking we can expect that probably 30% or better kind of cost efficiencies on that size of wafer.
In addition we were able to acquire the equipment from Comondo out of its bankruptcy proceedings so we got particularly attractive pricing on that equipment which will certainly lower the depreciation burden on each dollar of revenue that generates versus buying new equipment. So one would expect that that will allow us to continue to generate improving profitability over time on our analog revenue.
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