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Our discussion today will include some forward-looking statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. We caution that such statements are subject to a number of uncertainties and actual results may differ materially. Risk factors that could affect the company's actual results are included in our press release issued today and the company's filings with the SEC, including the most recent forms 10-K and 10-Q.Before we begin, I would like to mention the following upcoming events. On Tuesday November 15, we will be attending the UBS Global Technology and Services Conference in New York City and on Tuesday November 29 we will be attending the Credit Suisse Annual Technology Conference in Scottsdale, Arizona. Now, Ilan will discuss our most recent financials. Ilan? Ilan Daskal Thank you Chris. Good afternoon, and thank you all for joining us. For the first quarter of fiscal 2012, IR reported a revenue of $302.7 million, which was a 4.6% decline from the prior quarter and a 7.8% increase from the first quarter of fiscal year 2011. Quarter-over-quarter revenue declined as end market demands softened and customers reduced inventory. Our power management devices business unit posted the largest percentage revenue decrease among our end market segments. Gross margin for the September quarter were 37.9%, 0.7 percentage point higher than the prior quarter as we benefited from the higher factory utilization in the June quarter. We reported a net income $22 million or $0.31 per fully diluted share compared with $39.6 million or $0.55 per fully diluted share in the June quarter. The June quarter results included a $12.4 million gross tax benefit that benefited fully diluted earnings per share by $0.18. R&D expenses was $33 million compared with $32.5 million in the prior quarter. R&D expense represented 10.9% of revenue for the quarter. SG&A expenses were $49 million down about $3 million from the prior quarter primarily due to lower variable G&A cost. SG&A expenses represented 16.2% of revenue for the quarter. Amortization of acquisition-related intangibles was $2.6 million. Operating income was $30.2 million and represented 10% of sales for the quarter.
Other expenses net was $2.2 million in the September quarter primarily due to negative foreign currency rate volatility. Interest income net was $200,000 primarily due to low interest rates on our cash, cash equivalents and investments.The income tax for the September quarter was a $6.2 million expense primarily due to tax accruals in our foreign jurisdictions. The total cash, cash equivalents and investments at the end of the quarter was $443.7 million which included $2.1 million of restricted cash. During the quarter, inventory increased $32.8 million to $282.9 million. Weeks of inventory increased 3.3 weeks to 19.6 weeks. The increase included some safety stops that we had prebuilt to mitigate the potential risk associated with the switch over to our new ERP system. We are lowering FX utilization and working to reduce our inventory level in the December quarter. Cash from operating activities in the quarter was $16.6 million and free cash flow was a negative $28.6 million. Cash capital expenditures for the quarter were $45.2 million and represented about 14.9% of revenue. Of the $45.2 million about $10.7 million was related to our ERP implementation. Depreciation and amortization expense was $19.5 million and stock based compensation was $3.7 million. During the quarter we purchased about 1.1 million shares of our stock at a total cost of $23.6 million. We are now down to about 69 million shares outstanding at the end of the September quarter. Before I discuss guidance I would like to make a few a comments regarding our new ERP system. As you know the implementation has been taking place over the past 18 months. I am happy to report that we successfully went live with the new global system at the beginning of the months of October with no major technical issues to-date. However, as with any system change of this magnitude it will take several quarters for everyone to get comfortable with our new business processes and certain operational impacts may arise in the short term. We expect to realize a multitude of benefits that the new system will bring, and so significantly improve our operating efficiencies over time. Read the rest of this transcript for free on seekingalpha.com