Sequentially, this represents a reduction of $3.3 million for the first quarter, or a decline of 11.7%. As expected, infrastructure declined marginally after supplying pent-up demand in Q1. The lower revenue in wireless was principally due to an anticipated reduction of $2 million with Research In Motion, and then also by smaller declines in China OEMs who saw their own market shares drop as Apple and Samsung increasingly dominate smartphone sales.

For the quarter, we again had three greater than 10% customers, namely Samsung, ZTE, and Huawei, and another five customers in the 5% to less than 10% range. These customers include Cisco, LG, two of our distributors, Richardson and World Peace Group, and also Sierra Wireless, who replaced RIM within this category in the quarter.

Gross profit was impacted first by the decline in revenue and second by lower absorption of manifesting costs beyond the implemented cost reductions. We also absorbed additional costs as we introduce and ramp new technologies, processes, and products. Over time, these margin headwinds will ease as revenues recover and we complete the transition from legacy to new products.

In total, our non-GAAP gross profit declined sequentially by $3.8 million. For the quarter, our non-GAAP gross margin was negative 7.7%. Research and development expenses declined 4% sequentially but remain elevated as we continue to bring more products to market and accelerate new product introductions. There is substantial activity in the wireless area, and we view our offerings as differentiated and highly competitive. We’ve received positive market feedback from customers and are working to secure design wins in support of revenue growth later in the year and into 2013.

Selling and administrative expenses decreased by approximately 6% to $5.4 million following our second quarter reductions in force as we continue to eliminate or reduce noncritical expenses. We remain focused on streamlining our cost structure and on that front, we recently took additional actions that further reduced annualized expenses by over $1 million.

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