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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 and our most recent Form 10-Q filed in May. 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 – President and Chief Executive Officer Thank you, John. We are pleased with our overall performance in the June quarter as we once again demonstrated the strength of our high-quality specialty memory focus and our long-term consistent supply relationships with customers. We experienced strong demand across our key targets and achieved another solid quarter profits cash flow and design wins. Our GAAP net income was $8.1 million or $0.28 per share and our non-GAAP net income was $9.6 million or $0.34 per share. We also achieved $16.8 million in cash flow from operations. Revenue in the June quarter was $69.8 million, which was at the end of our guidance range and driven by an almost 10% sequential increase in our SRAM and DRAM revenue which totaled $65.3 million. The end contributed $4.5 million in analog revenue, which was slightly lower than expected due to weakness in the Chinese non-branded cell phone market. As we guided last quarter, we had expected our SRAM and DRAM revenue to be in the range of flat to up 8%. We exceeded these expectations primarily due to our SRAM revenue increasing 16% sequentially as a result of strong demand in the communications market. DRAM revenue grew 6% sequentially driven mainly by demand from our automotive and industrial customers. Growth in both of these product families reflects continued share gains across our target markets. In terms of our revenue growth by end market, automotive revenue grew 13% from the March quarter and 51% from the year ago quarter. In addition, we saw strong growth in the communications market with 10% sequential growth and 3% year-over-year growth as that market rebounded from an industry correction.
The industrial, medical, and military revenue grew 24% sequentially and 12% from the year ago quarter. As expected, revenue from our low margin consumer memory market decreased 11% from the March quarter and decreased 43% from the year ago quarter. As we discussed in our last conference call, we were concerned about the potential impact of the Japan disaster on our business, but fortunately, we were only minimally affected during the June quarter. However, we continue to closely monitor any supply chain disruptions that may have cause constraints on our customers to obtain components from their suppliers where that may results in a general reduction in demand in the Japanese market. We are most concerned about the potential impact to our automotive business as there are more component shortages limiting automotive or some component shortages limiting automotive production.We also believe that many customers are being more conservative in their ordering due to general uncertainty in the global economy as a result we remain cautious regarding this situation as we entered the September quarter, but continue to believe these will likely be short-term to disruptions if any. Now I will briefly review our key markets and products, including DRAM, SRAM and analog. Specialty DRAM represented 59% of our total revenue in the June quarter and increased 3% on a sequential basis, while commodity DRAM represented only 1% of our total revenue giving ISSI almost no exposure to this more volatile memory market. In terms of specialty DRAM design wins, we had another strong quarter across all of our end markets including numerous large DDR2 design wins for automotive, communications and industrial applications. We also achieve a number of key design wins in the automotive, telecommunications and consumer markets in both BI16 and BI32 configurations. We are experiencing strong design activity for our new DRAM products including our 256 megabit, 512 megabit and 1 gigabit DDR2, our mobile SD RAM in our 64 megabit and 128 megabit lower power SD RAM KGD product. We expect these new devices to contribute revenue growth in the coming quarters. Read the rest of this transcript for free on seekingalpha.com