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We refer you to the documents ISSI files from time-to-time with the SEC, specifically our most recent Form 10-K filed in December 2010. These documents contain and identify important factors that could cause our actual future results to differ materially from those contained in our financial guidance, projections, comments or other forward-looking statements.Scott Howarth Thank you, John. Over the past few months, we have made significant progress on our key strategic objectives. In fact, we believe the relative strength of our December quarter results doing an inventory end market correction further demonstrates the success of our focus on high quality specialty memory products in more stable end market segments. During the quarter, we signed an agreement with Micron to become an alternate supplier of RLDRAM 3. We are very pleased that major communications customers have shown a tremendous amount of interest in ISSI as an alternative supplier of high performance RLDRAM 3. Shortly after the quarter ended, we also announced that we completed the spin-off of our low-margin Giantec, ASSP business, which was then followed by announcement this week to acquire Si En Integration, adding high margin analog and mixed signal products to our portfolio. We believe these collective efforts have better positioned ISSI for sustainable growth in revenue and profit. With that, let me now discuss our December quarter results and then discuss these recent strategic events in greater detail. Revenue in the December quarter was $66.1 million, which represents a 10.2% of sequential decline and a 30.8% increase over the December 2009 quarter. As we mentioned on our last earnings call, the sequential decrease in revenue was due to a slowdown in customer orders that began in late summer and extended into December quarter. Also impacting the quarter was an end market inventory correction occurring in electronics markets in Asia as well as in some industrial, telecom and networking markets.
And although both were more wide spread than we originally expected, it appears the inventory correction is nearly complete. This assessment is based on our March quarter beginning backlog, orders that we have received so far in January, combined with forecast from our customers.We expect our March quarter to be more in line with normal seasonality for our business in target markets and are guiding SRAM and DRAM revenue to be sequentially flat to down 7%. This reflects expectations of our SRAM business to be flat to slightly down and DRAM to be flat to down 8%. Gross margin in the December quarter was 34% and non-GAAP was $8.3 million, or $0.30 per share. As you may have noticed, we began this quarter providing non-GAAP results in order to better assist investors in assessing ISSI's operational performance as well as our performance against our peers. Gross margin in the December quarter was lower sequentially primarily due to products' mix shifts as we sold high-density SDRAM combined with some pricing pressure in our DRAM business and higher wafer cost for some devices. By comparison, many DRAM suppliers incurred declines in revenue of more than 20%, but drastic declines in gross margins and incurred losses. And although our business will be affected by end market demand changes and inventory correction, we believe our focus on high quality specialty product reduces volatility and provides greater potential for growth in revenue and profits as well as margins than could be achieved by other DRAM suppliers. In addition, the advantages of our fabless business model, combined with stable end markets and support for customers' long-term product lifecycles further contributes to our sustainable revenue and profits for continued success. Let me now discuss our three strategic events in greater detail. On Monday we announced a definitive agreement to acquire Si En Integrations Holdings Limited, a privately held fabless provider of high performance analog in mixed signal integrated circuits headquartered in Xiamen, China. This complementary high margin products are sold into mobile communications, digital consumer networking and automotive markets. Si En’s products include audio power amplifiers, LED drivers for backlighting and panel display, voltage converters and temperature censors. Read the rest of this transcript for free on seekingalpha.com