The mobile phone market has contributed the most to our first quarter revenues. Strong demand from smartphone applications is a major reason for our continued strength in this market. Separately, the entertainment market remains a significant contributor to our Q1 revenues. We believe one of the main drivers, it’s our leadership position in tablets, which we have been including as part of our entertainment business.
With that said demand growth from smartphone and tablet applications continues to accelerate. We believe our participation in the mobile phone market and the entertainment market will continue to be the major driver for our top line performance in fiscal 2013. In the past few months, we’ve been focusing our efforts on building inventory and increasing our supply chain throughput to make sure we deliver on our promises when our end use customers choose our designs.
We’ve been working closely with all of our supply chain partners to maximize all aspect of production. Our efforts range from prioritizing production schedules to expanding capacity to streamlining supply chain logistics. Given our strong cash balance we’ve also made a strategic decision to pre build inventory to further increase our ability to meet the strong seasonal ramp from our target markets.
Meeting this strong demand is an ongoing challenge. We have been diligently executing our plan to tackle this challenge. I would also like to add that while we have regained revenues momentum, our gross margin remained under pressure as a result of our current cost structure. We continue to take actions that we believe will lead to margin expansion over time. As we move forward, we remind ourselves and our investors that our investment in R&D is the leading differentiator for the company.Read the rest of this transcript for free on seekingalpha.com