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 press release.
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 for our normal business operations. The non-GAAP financial measures help to clarify the impact of these items.
Aaron will discuss the financial performance for the quarter, and Alex will give us his comments on the industry and on Pericom’s business. Then, Aaron will provide guidance for the second quarter of fiscal 2012. Aaron?
Aaron TachibanaThank you, Bob, and good afternoon, everyone. Our consolidated net revenues for the first quarter were $35.3 million, and decreased by 18% from the $43.3 million reported last quarter and decreased by 17% from the $42.8 million for the same period last year. Most end market segments declined sequentially due to the reduction of inventory by our distributors and direct customers. The distribution channel inventory declined approximately 11% sequentially, and exiting Q1 there was roughly 6.5 weeks of inventory, which was well within our normal range of six to 10 weeks. During the last four to five quarters, we had peaked around eight weeks, so 6.5 was really healthy given the economic situation. The Q1 geographic mix was as follows; Asia 90%, U.S. 6% and Europe 4%. And our sales by channel were; international distribution 65%, contract manufacturers 23%, OEMs 9%, and U.S. distribution 3%. Consolidated non-GAAP gross profit was $13.1 million for Q1 compared with $15.7 million last quarter and $15.1 million last year. Non-GAAP gross margin for the first quarter was 36.9%, and was up 70 basis points from last quarter’s 36.2% and 160 basis points higher than last quarter’s 35.3%.