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Before I turn the call over to Camillo, let me remind listeners that during the call we will be making forward-looking statments based on our current expectations regarding many aspects of our business and the markets in which we operate. Including but not limited to, forward-looking statements about our financial results and performance, our current and future products and technologies, the timing of new product introductions, average selling prices, design wins, market demand for our products, operating expenses and standards activities.Our actual results may differ materially from our forward-looking statements and we disclaim any obligation to update any of our forward-looking statements. In addition, the company's forward-looking statements and the company's future results are subject to risks and uncertainties which we described in today's press release as well as in the most recent periodic reports on form 10-K and 10-Q filed with the SEC. These documents contain certain relevant risk factors that could affect our future results. We've also provided a financial metrics table and reconciliation of non-GAAP financial information to GAAP information in our First Quarter 2012 Financial Results Press Release which is available on the Investors Relations section of our website at www.siliconimage.com. And with that, I'd like to turn the call over to Camillo. Camillo Martino Thanks Mike. Good afternoon everyone and thank you for joining our First Quarter 2012 Earnings call today. First I'll give you a brief overview of the company's performance with a market update and then Noland will go through the numbers in more detail and provide our financial outlook for Q2. Silicon Image again performed well in the quarter with revenue at the top end of the guidance range. Mobile continues to be the main driver for the quarter. And our IP revenue was above the guidance range accounting for 22% of the total revenue.
Total revenue was $55.0 million compared to $58.7 million for the fourth quarter of 2011 and $49.0 million for the first quarter of 2011, representing approximately 12% growth for the quarter year-on-year. You may recall that our CE revenue in Q1 2011 turned out to be unseasonably high, in retrospect and that the Japan earthquake in late March of last year, ended up being a catalyst for a fundamental shift for the CE industry and the CE business.IP revenue was higher than our normal range of 15% to 20% due to continuing success of the HDMI ecosystem and seasonally lower product revenue. The higher IP revenue mix and stronger product gross margin lent to a stronger overall gross margin of 58.2%. Our operating expense levels were somewhat higher than we had forecast primarily due to four reasons; firstly, increased marketing spending associated with MHL branding which we talked about last quarter. Secondly, R&D tape ad expenses. Thirdly, our MHL Automotive initiative which I will discuss in a moment. And fourthly, higher than planned transition costs for our new R&D facility in India. Noland will provide greater detail on our outlook of OP EX a little later. This quarter's product revenue was primarily driven by mobile as the MHL standard is being adopted by many smartphone and table OEMs and we have achieved numerous design wins with our mobile product line. Starting with CES and continuing with Mobile World Congress we saw an increasing number of these product announcements. There are now a number of models from Samsung, HTC, LG, Wahway, plus Smartphones from Pantech, Mazoo, Lenovo and more and I am pleased that we have become a strategic supplier to many leading mobile phone manufacturers over the past 18 months. MHL is also gaining traction on the T.V. and display side as well. Samsung, LG, Toshiba are shipping HD TVs with MHL, with Samsung also shipping computer monitors with MHL. Onkyo is shipping several MHL equipped AVRs and Sharp is shipping a Blue Ray recorder with this MHL technology. Pioneer announced their App Radio for aftermarket car applications which includes an MHL input port. At CES last quarter Roku announced their streaming SIC with MHL technology which plugs into a T.V. to provide streaming content. Read the rest of this transcript for free on seekingalpha.com