Before we begin, I would like to point out that during the course of this conference call, we will be making forward-looking statements that involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, PMC's limited revenue visibility due to variable customer demand, market segment growth or decline, customer concentration, bookings rate, changes in inventory, supply constraints, foreign exchange rates and volatility in global financial markets, and other risk factors that are detailed in the company's SEC filings. Actual results may differ materially from the company's projection. For further information about these risks and uncertainties, please read the company's SEC filings, including our Forms 10-K and 10-Q.Note that PMC undertakes no obligation to update any forward-looking statements. Please note that for each of the historical non-GAAP financial measures mentioned on this call, a full reconciliation to the most comparable GAAP financial measures is included on our press release issued today. In addition, a GAAP to non-GAAP reconciliation of financial measures noted in our outlook will be posted on our website under the Financial Reports section of the Investor Relations tab. [Operator Instructions]. Thank you, and I will now turn the call over to Greg Lang. Gregory S. Lang Thank you, and welcome to our first quarter earnings call. During the quarter, we continued to see evidence that orders are moving in the right direction. For the full quarter, bookings were up approximately 25% over Q4 levels and we finished with a book-to-bill over 1.1, and anticipate solid growth in Q2. Our storage and server business continues at a healthy clip with strong server sales coincident with the Romley ramp. With much of the inventory cleanup behind us, we expect the balance of the year to continue to strengthen. Despite positive macro signs, there are still areas of weakness in the markets we serve. As you've heard from most of our peers serving the carrier equipment market, a solid recovery is not yet upon us. In conversations with our customers and a few other carriers themselves, most are upbeat about a second half spending, but don't -- we don't yet see it on our bookings. Two of the 3 China carriers are forecasting strong growth while China Mobile, and the established North America carriers, are protecting more modest single-digit growth.
Given the slow start to 2012, this could lead to a strong second half. So this general backdrop, I'd like to get into the details of Q1. The first quarter was a challenging time for the industry of what appears to be at the bottom of the cycle. For PMC, we reported net revenues of $132 million and $0.06 non-GAAP EPS. While revenue was near the midpoint of our range, the mix was a bit different than we expected. Storage came in stronger than our initial expectations while our Optical business was off more than expected with continued weakness in that market segment. At the top level, the Storage Network segment was 66% of total revenue, up from 64% in Q4. Optical revenue came in at 20% of the total, down from 23%, and mobile revenue came in at 14% of the total, up from 13% last quarter.For those of you tracking the legacy portion of our revenue, it dropped 8% of total revenue in Q1. Now some more detail on the storage and market segments. Our storage business in Q1 was down approximately 11% versus last quarter, which is several million dollars better than we had anticipated, mostly due to stronger demand and servers given the Romley ramp. Drive shortages didn't seem to impact our large server or storage OEMs as much as it did impact the channel which was down more than seasonally. Overall, this 11% decline is more in line with the normal 6% to 10% seasonality that we would normally expect in the Q1. With the big inventory consumption and the slow seasonal quarter behind us, we expect to see solid growth potential for the balance of the year. Read the rest of this transcript for free on seekingalpha.com