In accordance with regulations of Fair Disclosure, Pericom will continue to only provide guidance via its earnings release and its conference calls. The company will not provide further guidance or updates during the quarter unless it does so via a press release. Aaron will discuss the financial performance for the quarter and Alex will give his comments on the industry and on Pericom's business. Then he will provide guidance for the third quarter of fiscal 2011. Aaron?
Thank you, Bob, and good afternoon, everyone. We are very pleased to report another solid quarter of earnings and results despite the recent inventory adjustments by our customers and channel partners and the slowdown of the consumer and PC segments.
Q2 was our 23 rd consecutive quarter of profitability and we are very proud of this accomplishment. During Q2, we generated almost $8 million of cash, forged ahead with the PTI integration, consolidated our first full quarter with PTI and announced nine new products for our Signal Integrity, Timing, and Connectivity product areas. Please note that we are reporting non-GAAP financial measures for net income, gross profit and operating expenses in addition to our GAAP financial results. Due to the PTI acquisition, we have a significant amount of non-cash and non-operating expense items included in the income statement which are not reflective of the performance of our normal business operations. Also, Q2 included three months of PTI results, whereas last quarter only had one month due to the close timing of the acquisition.Now, let’s review some of the detail. Our consolidated net revenues for the second quarter were $40.7 million and represented a 5% decrease from the $42.8 million reported last quarter and a 14% over the $35.8 million for the same period last year. The PTI revenue for Q2 was $5.4 million compared with $1.8 million or one month of Q1. The sequential decrease of 5% was mostly attributed to the inventory reduction efforts by our distributors and customers and also the softness from PC and consumer sectors.