Today's call will include a discussion of certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to and not as a substitute for or in isolation from GAAP measures. A reconciliation of the non-GAAP and GAAP reporting for the period discussed can be found in today's earnings release.
All numbers discussed today will be in US dollars unless otherwise noted.
I would now like to turn the call over to Dr. Leo Li. Please go ahead, sir.
Leo LiThank you. Welcome, everyone, and thank you for joining us today. In the second quarter of 2012, we achieved revenue of $173.1 million, which is in line with the guidance we gave previously and 7.5% increase over the first quarter. I am very pleased to update you on the progress we have made with our smartphone products. This quarter we achieved a strong volume ramp-up of our 1 Ghz TD-SCDMA Edge smartphone chipset, shipping more than 1 million units as expected. Customers such as Huawei, Lenovo, [Pryor], Hisense and others have completed China Mobile's certification test, launched low-cost smartphones based on our products. Many are targeting a new [ratio] price in the range of RMB500 to RMB700, which is making TD-SCDMA smartphone even more affordable and attractive for mass market consumers. We are seeing very strong demand for our smartphone products and are raising our shipment focus. We now expect to ship more than 10 million smartphone chipsets in the third quarter alone. In the high end of TD-SCDMA market, we expanded our business with the first-tier OEMs, growing shipment of our best-in-class TD-SCDMA-based modems. In our customers, our customers use these modems in very high-end smartphone designs. Our baseband and RF transceivers are shipping in flagship handsets, that is recently launched, including Samsung's Galaxy S3, HTC One XT and the other devices from first-tier China OEMs.