Before we begin, let me remind you that TI will host an Investor Meeting in New York on May 3. At this meeting, our CEO, Rich Templeton, and Kevin March, will provide an update on TI's strategy, market positions and goals. If you have not already registered, please do so as soon as possible. Our mid-quarter update to our outlook is scheduled this quarter for June 11. At that time, we expect to adjust the revenue and earnings guidance ranges as appropriate.Let me start with the market environment. The first quarter's results landed close to our expectations and were consistent with our belief that our business cycle bottomed in the first quarter. Analog revenue was about even. We were especially encouraged by the progress we continue to make with the former National Semiconductor product line, now called Silicon Valley Analog, as it gains traction with customers and holds a strong position in the important industrial market. Early signs point to the industrial market strengthening in the near term as opposed to the delayed recovery that we saw in the last cycle. Embedded Processing revenue grew in the quarter, led by strength in automotive and the beginning of a recovery in communications infrastructure. In wireless, revenue fell sharply as we had expected. Baseband revenue declined to less than 3% of our first quarter revenue and we expect it to remain at very low levels throughout the remainder of 2012. Our Other segment was up as a result of about $65 million of insurance proceeds associated with the Japan earthquake that were received in the last few days of the quarter. The proceeds were part of an ongoing settlement process with the insurance companies and were not included in our earlier guidance due to the uncertainty over their timing. Core products were 78% of our first quarter revenue, up from 71% a year ago and 66% two years ago. As these products continued to make up a higher proportion of our revenue, our business is becoming more diversified across customers and markets. For example, in 2009, we had a single customer that made up more than 20% of TI revenue. In first quarter '12, it takes the combination of our top 6 customers to exceed 20%. We now have more than 90,000 customers and no single customer comprises more than a mid-single-digit percentage of our revenue.
We believe this expanding diversity is strong evidence that our large sales force and broad customer footprint are paving the way, not only for TI share gains, but also for results that will be determined more so by our own execution in the years ahead and not swung by the fortunes of a particular customer or a narrow market segment.Consistent with our view that the first quarter was the bottom of our business cycle, we believe growth will resume in the second quarter. In fact, at middle of our guidance range, sequential growth would hit 10% when compared with the first quarter's results without the insurance proceeds. Supporting this forecast was order growth in the quarter of 13%, which resulted in a book-to-bill ratio of 1.04 and our first quarterly expansion in backlog since the second quarter of 2011. As a reminder, in the fourth quarter, our book-to-bill ratio was 0.84. We saw a broad-based order growth across the geographical regions and many of our end markets. We believe TI is very well-positioned as our markets rebound in the quarters ahead. Our product portfolio is strong and our design position with customers is excellent. Our acquisition of National Semiconductor should contribute revenue and share gains as customers across the world embrace the strength of this portfolio, combined with the attraction of TI's market channels and our customer-oriented business approach. As you know, we have been anticipating this upturn, and as a result, we have our inventory well-staged and production in our factories ramping. Our manufacturing capacity is strong, and our teams are poised to drive growth and capture share gains as the market strengthens. Read the rest of this transcript for free on seekingalpha.com