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Scott HowarthThank you John. We are pleased with our overall performance in the March quarter. We believe the quarter demonstrated the strength of our high-quality specialty business during an otherwise seasonally slower March quarter, and it also marked the end of the market inventory correction that began last summer. We experienced strong demand in the industrial market, which nearly offset the normal seasonal slowdown and general softness in the communications market. In addition, we completed our acquisition of Si En Integrations, adding high margin, analog and mixed signal products to our portfolio. I will discuss Si En in more detail later after a brief review of our March quarter performance. Revenue in the March quarter was $63.3 million, which was at the high end of our guidance range. Our SRAM and DRAM revenue was $59.6 million and declined less than 1% from the December quarter, but increased 15.6% over the year ago quarter. Si En contributed $3.7 million in analog revenue in the two months after our integration, or after acquisition, which is also at the high end of our guidance range. As we discussed on our last earnings call, we had expected our SRAM and DRAM revenue to be flat to down sequentially due to normal March seasonal quarterly activity. Looking at the breakout, SRAM revenue decline 8% sequentially due to seasonality and general softness in the communications market. However, our DRAM revenue actually grew 3% sequentially driven partially by strong demand from our industrial customers. The end market inventory correction that began late last summer was completed early in the March quarter as customers returned to normal ordering patterns. GAAP gross margin in the March quarter was 33.1% and non-GAAP gross margin was 33.7%. The gross margin was at the low end of our guidance range due to a higher mix of DRAM and less SRAM and also due to foreign currency fluctuations. John will explain the gross margin in more detail.
Our GAAP net income was $5.8 million or $0.20 per share and our non-GAAP net income was $7.4 million or $0.26 per share. The non-GAAP numbers exclude stock compensation, and Si En acquisition related items.In addition to the continued strong performance of our specialty memory products, on January 31 we completed our acquisition of Si En Integrations Holdings Ltd., a privately held FAB’s provider of higher performance analog and mixed signal integrated circuits, headquartered in Xiamen, China. Their high margin products are sold into the mobile communications digital consumer networking and automotive markets, highly complementary to the core markets of our specialty memory. Si En’s products include audio power amplifiers, LED drivers for back lighting and panel display, voltage converters and temperature sensors. Approximately half of Si En’s revenue is from power amplifiers for the cell phone market. Si En currently has approximately 13% share of the worldwide audio power amplifier cell phone market and approximately 70% share of the audio power amplifier market in China, non OEM, non ODM cell phones. Key customers for Si En include Linovo, Alcatel/Tel, Pagum [ph]/Bird and ZTE. This acquisition enables us to sell a broader range of products across our combined customer base while also increasing our presence in China and expanding our addressable market by $4 billion. We are just beginning the process of integrating Si En into our business and see many opportunities to leverage our products, expand our share at new and existing customers and grow the business. As expected Si En was accretive to our earnings per share in the March quarter. Read the rest of this transcript for free on seekingalpha.com