We feel comfortable that the numbers we've got out there are achievable.
Going forward, we will continue to closely control costs while investing in key markets to maximize our potential for profitability.
Our third quarter typically reflects a post-holiday seasonal decline in revenues. Although bookings picked up in October and November, it is too early to tell whether that momentum will carry over enough to offset the normal seasonal pattern.
We are ahead of schedule on the return to profits plan we announced on May 5.
We are ahead of our gross margin goals and we are continuing in the same direction.
We will immediately cease slugging it out in the PC processor market, which has been dragging down our financial performance for several quarters.
We're in the analog business, and analog is what's driving all the displays, and audio, and battery life in wireless. Wireless is clearly our biggest segment, and we plan on this market doing exactly what it's been doing for the last three and a half years.
Led by robust analog and wireless sales, we had an outstanding quarter. Focus on execution drove our gross margins to 51 percent, up from 48 percent in the previous quarter.
Seven weeks ago at our Dec. 7 earnings announcement, we projected a falloff in the current quarter of 10 percent based on slowness in the wireless market, PCs and peripherals, and a broad-based distribution inventory correction.
Due to the low bookings in the fourth quarter we now expect a further decline in sales for the first quarter.
