The Q2 geographic distribution was as follows. Asia, 88%; US, 8%; and Europe was 4%. Our channel sales mix was; international distribution, 63%; contract manufacturers, 22%; OEM, 10%; and US distribution was 5%.
Consolidated non-GAAP gross profit was $14.8 million for Q2 compared with $15.1 million last quarter and $12.1 million last year. Non-GAAP gross margin for the second quarter was 36.3% and was 100 basis points higher than last quarter’s 35.3% and 240 basis points higher than last year’s 33.9%. The sequential quarter gross margin increase was primarily due to the benefit of consolidating PTI results for a full quarter and 50% plus gross margin. PTI’s gross margin added roughly 200 basis points to consolidated average, but was partially offset by unfavorable absorption due to low volume in Q2 and also unfavorable currency exchange from the weaker dollar.
Non-GAAP operating expenses were $10.5 million for Q2 compared with $10.3 million last quarter and $9.4 million last year. The Q2 expenses were sequentially higher by $0.2 million due to consolidating PTI for a full quarter, compared with only one month of PTI expenses last quarter. We partially offset the PTI increase with reductions in payroll-related costs from the winter holiday shutdown, lower variable selling costs due to the volume decline, and lower order-related expenses in Q1.
The Q2 operating income on a non-GAAP basis was $4.2 million, 10% of revenue, compared with $4.8 million or 11% of revenue last quarter and $2.7 million or 8% of revenue for the same period last year. The sequential decrease of 1% was due to the $0.2 million increase in OpEx on slightly lower revenue for the quarter. Interest and other income for Q2 was $0.8 million compared with $1 million last quarter. The $0.2 million sequential decrease was due to realized gains from the sale of cash investments in Q2 compared with last quarter.Read the rest of this transcript for free on seekingalpha.com