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 Aaron will provide guidance for the fourth quarter of fiscal 2011. Aaron.
Thank you Bob and good afternoon everyone. Although our Q3 net earnings were not at the same level as the previous five quarters, we remain profitable and generated positive cash flow from operations.We continued to focus on asset utilization and maintaining a strong balance sheet. During the quarter, we reduced in-house inventory by $3 million or 11% sequentially and also reduced channel inventory from eight down to seven weeks. Cash and marketable securities were $121 million at the end of Q3 and were flat from last quarter. Consistent with the last two quarters, please note that we are reporting non-GAAP financial measures for net income, gross profit and operating expenses in addition to our GAAP financial result. Due to the PTI acquisition, we had a significant amount of non-cash and non-operating expense items included in the income statement which were not reflective of performance for our normal business operation. Now let’s review some of the detail. Our consolidated net revenues for the third quarter were $39.6 million and represented a 3% decrease from the $40.7 million reported last quarter and an 8% increase over the $36.7 million for the same period last year. The Q3 sequential decrease of 3% was mostly due to the inventory reduction efforts by our distributors and customers. As mentioned earlier, the channel inventory decreased from eight down to seven weeks during the quarter.
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