And MSG revenues were $335 million in the quarter, up 6% from Q1 but down 21% from Q2 last year. Sequentially, sales benefited from growth in both wireless and infrastructure and enterprise. Sales of our application processes to the consumer market increased sequentially as well. And year over year, net working revenues were negatively impacted by lower demand, primarily in the wireless and infrastructure market.
Our cellular product sales were $50 million compared to $66 million in Q1 and $122 million in Q2 of last year. Other products, which again primarily consist of IP revenue and patent sale, resulted in quarterly net sales of $76 million compared to $40 million in the first quarter and $44 million last year. The increase in sales was driven by multiple IP licensing and patent sale transactions completed in the quarter. And I will provide additional detail on the transactions later in the call.
Finally, sales to distribution were flat sequentially and were down 20% compared to last year. Recall that the first half of 2011 was quite strong in the distribution channel. Looking at our distribution [inventory] was essentially flat compared to Q1, and weeks [inventory] decreased from 10.7 in Q1 to 9.6 in Q2. Our book-to-bill ratio in the second quarter was 0.98 compared to 1.05 in the first quarter.
Now looking to gross margins and operating expenses, our gross margins were 42.8% compared to 42.3% in the first quarter. The gross margins benefited from higher IP licensing revenue and overall operating efficiency. Offsetting this benefit was the impact of a lower margin product mix and lower overall front-end utilization as we began the process of eliminating production in our Toulouse, France facility. We expect to complete final outs from this facility during the third quarter.Read the rest of this transcript for free on seekingalpha.com
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