Question-and-Answer Session
Operator
(Operator instructions) And we will take our first question from Hans Mosesmann from Raymond James.
Hans Mosesmann – Raymond James
Okay. Thank you Alex. Congratulation on the quarter. Just a couple of questions, you mentioned that in PCI Express, your connectivity products were up 50%, what’s driving that acceleration by specific application? Has that to do with the Calpella platform in notebooks, or what is going on there?
Alex Hui
Actually, you know, this is really driven by the strength that we see in both notebook, desktop and servers, and we see particularly pretty strong demand from our PC customers overall. But also, we are beginning to reship into some embedded applications, as I mentioned, in our printers and some wireless router applications. Again, overall strong demand from the PC segment and then some new applications. We do not see that Calpella is contributing significantly yet, and we don’t expect to see significant contributions in Calpella, our revenue to (inaudible).
Hans Mosesmann – Raymond James
Okay. You are not seeing that. Is that because phase 1 of Calpella is kind of more focused at the high end of the notebook market or what’s going on?
Alex Hui
Yes, we will begin to ship into the Calpella platform this quarter, but we are really seeing the significant ramp, which is going to come next spring, preparing for the back to school.
Hans Mosesmann – Raymond James
Okay. And the then one other follow-up, there is a lot of concern regarding the double ordering and a lot of inventory that people perceive that was put into the market in Q3 that may not be selling or maybe it is selling, can you give us some kind of qualitative commentary in terms of how you see the supply chain and how the sell-through may be going on given your guidance which seems to suggest sort or normal –?
Alex Hui
Yes, if you look at our channel inventory, ending September versus June, we are up probably a few hundred thousand dollars, but if you look in terms of weeks of inventory, we are essentially flat. And so, if you look at our channel inventory now compared to historical, we actually still see that our inventory is on the lean side. This time, our company stretch out – the customers and distributors have certainly placed orders further ahead. That’s why we believe the substantial increase in the backlog entering the December quarter, is driven by a combination of longer lead time and also end time. We expect in this particular quarter, we see substantially lower turns compared to historical, just because customers have placed all the more a hit.
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