- Sales are now expected to decline 7% to 10% sequentially. This is a revision from previous guidance that called for sales to be up 1% to down 3% sequentially.
- Weaker than expected sales growth during the quarter is driven primarily by the Communications and Industrial and Other categories.
- Gross margin forecast remains unchanged at approximately 63%.
- Operating expenses are expected to be approximately $208 million, including approximately $2 million of amortization of acquisition-related intangibles and approximately $4 million in restructuring charges. This is lower than original guidance of $218 million due primarily to lower variable expense and timing of development expense, including labor; and lower than anticipated restructuring charges.
No conference call will be held in conjunction with this business update. Additional commentary pertaining to the quarter will be available when the company reports its second quarter financial results on October 19, 2011.
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