I will now turn the call over to Ralph to provide an overview of the quarter.Ralph G. Quinsey Thanks, Steve, and good afternoon, everyone. I will start the call with an overview of our first quarter results and then provide a more detailed review of each of our major markets. Steve will follow with a review of our first quarter financial performance and guidance regarding our second quarter outlook. I will then make a few closing comments and open the call for questions. The financial results for the first quarter were in line with our guidance. TriQuint's revenue for the quarter was $216.7 million and EPS was $0.02. Gross margins were 30.4% and operating expenses were $61.4 million, including $3.9 million of legal expenses related to our antitrust and IP claims against Avago. Compared Q4, total revenue was down 5%, which is slightly better than normal seasonality for Q1. Mobile Devices revenue was down 8% and we saw a 4% reduction in Defense and Aerospace. However, our network infrastructure market posted a sequential 10% increase in revenue. While our first quarter results were in line with our guidance, our outlook for the second quarter is well below initial expectations. Second quarter revenue is now estimated to be between $170 million and $185 million, which represents an 18% sequential reduction at the midpoint of the range. The Q2 revenue reduction is largely driven by lower demand from our largest customer, Foxconn. Lower revenue will reduce utilization in our factories causing lower gross margin. I believe the Q2 demand dip is temporary and I expect to return to more normal revenue levels in Q3. Additionally, we are now expecting higher litigation costs as we prepare for trial, which will increase on operating expenses. We are guiding a non-GAAP loss in the second quarter of between $0.10 and $0.15 per share. Despite our near-term revenue outlook, the overall growth driver for our end markets remain intact and I believe TriQuint is well positioned to take advantage of the market opportunities ahead. Let me provide more color on each market starting with Mobile Devices. Our overall thesis for Mobile Devices remains the same with the strong market and good growth opportunities for TriQuint, and good traction with our MMPAs and transmit modules.
We do see a significant revenue step down in Q2 and I expect this to be temporary with a return to more normal revenue levels in Q3. Mobile Devices revenue for Q1 was approximately $148 million, down 8% sequentially. Revenue from the 3G/4G segment was about $119 million, down 7% sequentially. We have regained momentum in GSM with revenue from our 2G segment, up 26% sequentially, at approximately $9 million.Lastly, revenue from our connectivity products, largely wireless LAN, is about $20 million, down 24% sequentially. Our cellular revenue growth, independent on our largest customer, did quite well in Q1, whereas typically Q1 is seasonally down 10% to 15%. Cellular revenue from this group of customers was up 8% sequentially. Just to be clear, our combined 2G, 3G and 4G revenue, our core cellular revenue from customers excluding Foxconn was up nicely in what is normally a down quarter. This is solid performance and a result of successful design wins primarily with customers in Korea and Taiwan. About 2/3 of this growth was in 3G/4G products and 1/3 in 2G products. We are clearly seeing a good response from customers as we reengage with the market post capacity constraints. Key product drivers for revenue growth our MMPAs, transmit modules and our dual products. Turning to WiLink, where we have broad penetration in smartphones. We saw a 24% revenue decline sequentially. This was a combination of Q1 seasonality and the fact that we are in a gap between product lines with slowing demand for our older products where we are just starting ramp on new products. Some of the weakness is due to customer seeing soft demand from their products in the market. Read the rest of this transcript for free on seekingalpha.com