We reported second quarter revenues of $163 million, a 22% decrease from $209.1 million in the second quarter of 2011, and a 4.5% increase from $156 million in the first quarter of 2012. We also reduced our inventory and our long-term debt during the quarter, positioning the company for profitable growth in the coming quarters, Jonathan will provide more financial details in his remarks.

Regardless of the economic cycles, our Board of Directors is committed to sustaining shareholder returns, and has authorized a quarterly dividend at $0.12 per share common stock. At today’s closing price, that translates to a yield of approximately 5%.

At this time, I'd like to turn the call over to Jonathan Kennedy for a financial summary of the second quarter. I’ll then discuss results from each of our end markets in more detail, and finally, provide comments on our third quarter 2012 outlook. Jonathan?

Jonathan Kennedy

Thank you, Dave. I'll start with the income statement. Today, we reported $163 million in revenue for the second quarter, a 22% decrease from the second quarter last year, and a 4.5% sequential increase from the first quarter of 2012. Revenue increased sequentially in both industrial and infrastructure and the personal computing market, but was offset by decline in the consumer market, where weakness in optical sensor sales to certain smartphone and display customers accounted for most of the decline.

Our lead times remained normal throughout the quarter with no significant supply constraints, and our internal utilization remained below optimal level at just under 70% as production continued below consumption, and inventory levels were reduced.

Second quarter churns were about 36%, and we are expecting Q3 churns to be about the same at the midpoint of our guidance. Our gross margin was 54.5% in Q2, 10 points below the previous quarter driven primarily from unfavorable product mix.

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