----

----

| /x/ | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| / / | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------|----------------------------------------------------------------------------------------------------|

| DELAWARE(State      or Other Jurisdiction ofIncorporation      or Organization)                             |   | 94-2669985(I.R.S.      EmployerIdentification      No.) |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|
|  6024      SILVER CREEK VALLEY ROAD, SAN JOSE, CALIFORNIA(Address      of Principal Executive Offices) |   |  95138(Zip      Code)                              |

|                               |   |                                           |
|------------------------------------|--------|------------------------------------------------|
| Title of each      class           |   | Name of each exchange on which      registered |
|                               |   |                                           |
| Common      stock, $.001 par value |   | The      NASDAQ Stock Market LLC          |

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Table of Contents

TABLE OF CONTENTS

| Item      1.                            | Financial Statements      (Unaudited)                                                                                |   |   |   |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                    | Condensed Consolidated      Statements of Operations for the three months ended June 28, 2009 and June      29, 2008 |   |   | 3      |   |
|                                    | Condensed Consolidated      Balance Sheets as of June 28, 2009 and March 29,      2009                               |   |   | 4      |   |
|                                    | Condensed Consolidated      Statements of Cash Flows for the three months ended June 28, 2009 and June      29, 2008 |   |   | 5      |   |
|                                    | Notes to Condensed      Consolidated Financial Statements                                                            |   |   | 6      |   |
| Item      2.                            | Management’s Discussion and      Analysis of Financial Condition and Results of      Operations                |   |   | 31     |   |
| Item      3.                            | Quantitative and Qualitative      Disclosures About Market Risk                                                      |   |   | 41     |   |
| Item      4.                            | Controls and Procedures                                                                                              |   |   | 41     |   |
|                                    |                                                                                                                 |   |   |   |   |
| PART II—OTHER    INFORMATION |                                                                                                                 |
|                               |                                                                                                                 |   |   |   |   |
| Item      1.                            | Legal Proceedings                                                                                                    |   |   | 42     |   |
| Item      1A.                           | Risk Factors                                                                                                         |   |   | 43     |   |
| Item      2.                            | Unregistered Sales of Equity Securities and Use of      Proceeds                                                     |   |   | 51     |   |
| Item      3.                            | Defaults Upon Senior Securities                                                                                      |   |   | 51     |   |
| Item      4.                            | Submission of Matters to a Vote of Security      Holders                                                             |   |   | 51     |   |
| Item      5.                            | Other Information                                                                                                    |   |   | 51     |   |
| Item      6.                            | Exhibits                                                                                                             |   |   | 52     |   |
| Signatures                              |                                                                                                                 |   | 53     |   |

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Table of Contents

ITEM 1.    FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENTS OFOPERATIONS

|                                      |   |  Three      months ended |    |
|-------------------------------------------|--------|-------------------------------|---------|
|                                      |   | June      28,2009             |    |   | June      29,2008 |   |
| Revenues                                  |   | $                             | 115,954 |   |   | $ | 188,208 |   |
| Cost      of revenues                     |   |                          | 68,789  |   |   |   | 103,749 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Gross      profit                         |   |                          | 47,165  |   |   |   | 84,459 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Operating      expenses:                  |   |                          |    |   |   |   |   |   |
| Research      and development             |   |                          | 36,315  |   |   |   | 43,619 |   |
| Selling,      general and administrative  |   |                          | 25,435  |   |   |   | 32,965 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Total      operating expenses             |   |                          | 61,750  |   |   |   | 76,584 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Operating      income (loss)              |   |                          | (14,585 | ) |   |   | 7,875 |   |
| Interest      expense                     |   |                          | (19     | ) |   |   | (18 | ) |
| Interest      income and other, net       |   |                          | 1,425   |   |   |   | 1,465 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Income      (loss) before income taxes    |   |                          | (13,179 | ) |   |   | 9,322 |   |
| Provision      for income taxes           |   |                          | 942     |   |   |   | 168 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Net      income (loss)                    |   | $                             | (14,121 | ) |   | $ | 9,154 |   |
|                                      |   |                          |    |   |   |   |   |   |
| Basic      net income (loss) per share:   |   | $                             | (0.09   | ) |   | $ | 0.05 |   |
| Diluted      net income (loss) per share: |   | $                             | (0.09   | ) |   | $ | 0.05 |   |
| Weighted      average shares:             |   |                          |    |   |   |   |   |   |
| Basic                                     |   |                          | 165,430 |   |   |   | 171,080 |   |
| Diluted                                   |   |                          | 165,430 |   |   |   | 171,366 |   |

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Table of Contents

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                   | June      28,2009 |   | March      29,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|--------|--------------------|--------|
| Assets                                                                                                                                                                 |              |   |               |   |   |   |
| Current      assets:                                                                                                                                                   |              |   |               |   |   |   |
| Cash      and cash equivalents                                                                                                                                         |              | $      | 165,095            |   |   | $ | 136,036 |   |
| Short-term      investments                                                                                                                                            |              |   | 140,893            |   |   |   | 160,037 |   |
| Accounts      receivable                                                                                                                                               |              |   | 51,339             |   |   |   | 54,894 |   |
| Inventories                                                                                                                                                            |              |   | 62,788             |   |   |   | 69,722 |   |
| Deferred      tax assets                                                                                                                                               |              |   | 1,696              |   |   |   | 1,696 |   |
| Prepayments      and other current assets                                                                                                                              |              |   | 18,322             |   |   |   | 19,881 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Total      current assets                                                                                                                                              |              |   | 440,133            |   |   |   | 442,266 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Property,      plant and equipment, net                                                                                                                                |              |   | 68,351             |   |   |   | 71,561 |   |
| Goodwill                                                                                                                                                               |              |   | 89,463             |   |   |   | 89,404 |   |
| Acquisition-related      intangibles, net                                                                                                                              |              |   | 51,330             |   |   |   | 50,509 |   |
| Other      assets                                                                                                                                                      |              |   | 21,830             |   |   |   | 24,627 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Total      assets                                                                                                                                                      |              | $      | 671,107            |   |   | $ | 678,367 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Liabilities      and stockholders' equity                                                                                                                              |              |   |               |   |   |   |   |   |
| Current      liabilities:                                                                                                                                              |              |   |               |   |   |   |   |   |
| Accounts      payable                                                                                                                                                  |              | $      | 31,533             |   |   | $ | 25,837 |   |
| Accrued      compensation and related expenses                                                                                                                         |              |   | 16,168             |   |   |   | 18,820 |   |
| Deferred      income on shipments to distributors                                                                                                                      |              |   | 14,771             |   |   |   | 16,538 |   |
| Income      taxes payable                                                                                                                                              |              |   | 939                |   |   |   | 457 |   |
| Other      accrued liabilities                                                                                                                                         |              |   | 21,041             |   |   |   | 21,206 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Total      current liabilities                                                                                                                                         |              |   | 84,452             |   |   |   | 82,858 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Deferred      tax liabilities                                                                                                                                          |              |   | 3,312              |   |   |   | 3,220 |   |
| Long-term      income tax payable                                                                                                                                      |              |   | 20,957             |   |   |   | 20,907 |   |
| Other      long-term obligations                                                                                                                                       |              |   | 14,324             |   |   |   | 14,314 |   |
| Total      liabilities                                                                                                                                                 |              |   | 123,045            |   |   |   | 121,299 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Commitments      and contingencies (Notes 15 and 16)                                                                                                                   |              |   |               |   |   |   |   |   |
| Stockholders'      equity:                                                                                                                                             |              |   |               |   |   |   |   |   |
| Preferred      stock; $.001 par value: 10,000 shares authorized; no shares      issued                                                                            |              |   | --                 |   |   |   | -- |   |
| Common      stock; $.001 par value: 350,000 shares authorized; 165,563 and      165,298 shares outstanding at June 28, 2009 and March 29, 2009,      respectively |              |   | 166                |   |   |   | 165 |   |
| Additional      paid-in capital                                                                                                                                        |              |   | 2,287,901          |   |   |   | 2,283,601 |   |
| Treasury      stock; at cost:  57,752 shares at June 28, 2009 and      March 29, 2009, respectively                                                |              |   | (777,847           | )      |   |   | (777,847 | ) |
| Accumulated      deficit                                                                                                                                               |              |   | (963,842           | )      |   |   | (949,721 | )  |
| Accumulated      other comprehensive income                                                                                                                            |              |   | 1,684              |   |   |   | 870 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Total      stockholders' equity                                                                                                                                        |              |   | 548,062            |   |   |   | 557,068 |   |
|                                                                                                                                                                   |              |   |               |   |   |   |   |   |
| Total      liabilities and stockholders' equity                                                                                                                        |              | $      | 671,107            |   |   | $ | 678,367 |   |

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CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS

|                                                                              |   |  Three      months ended |    |
|-----------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                              |   | June      28,2009             |    |   | June      29,2008 |   |
| Cash      flows provided by operating activities:                                 |   |                          |    |   |   |   |
| Net      income (loss)                                                            |   | $                             | (14,121 | ) |   | $ | 9,154 |   |
| Adjustments:                                                                      |   |                          |    |   |   |   |   |   |
| Depreciation                                                                      |   |                          | 6,030   |   |   |   | 6,566 |   |
| Amortization      of intangible assets                                            |   |                          | 5,219   |   |   |   | 20,859 |   |
| Stock-based      compensation expense, net of amounts capitalized in    inventory |   |                          | 4,260   |   |   |   | 8,129 |   |
| Note      receivable net of deferred gain write off                               |   |                          | 2,002   |   |   |   | -- |   |
| Deferred      tax provision                                                       |   |                          | 92      |   |   |   | 195 |   |
| Changes      in assets and liabilities (net of amounts acquired):                 |   |                          |    |   |   |   |   |   |
| Accounts      receivable, net                                                     |   |                          | 3,555   |   |   |   | 348 |   |
| Inventories                                                                       |   |                          | 7,050   |   |   |   | 981 |   |
| Prepayments      and other assets                                                 |   |                          | 1,168   |   |   |   | 5,643 |   |
| Accounts      payable                                                             |   |                          | 5,636   |   |   |   | 664 |   |
| Accrued      compensation and related expenses                                    |   |                          | (2,652  | ) |   |   | (5,393 | ) |
| Deferred      income on shipments to distributors                                 |   |                          | (1,767  | ) |   |   | (1,627 | ) |
| Income      taxes payable and receivable                                          |   |                          | 1,022   |   |   |   | 3,285 |   |
| Other      accrued liabilities and long term liabilities                          |   |                          | 217     |   |   |   | 1,121 |   |
|                                                                              |   |                          |    |   |   |   |   |   |
| Net      cash provided by operating activities                                    |   |                          | 17,711  |   |   |   | 49,925 |   |
|                                                                              |   |                          |    |   |   |   |   |   |
| Cash      flows provided by (used for) investing activities                       |   |                          |    |   |   |   |   |   |
| Acquisitions,      net of cash acquired                                           |   |                          | (5,975  | ) |   |   | -- |   |
| Purchases      of property, plant and equipment                                   |   |                          | (3,017  | ) |   |   | (4,349 | ) |
| Purchases      of short-term investments                                          |   |                          | (69,712 | ) |   |   | (56,971 | ) |
| Proceeds      from sales of short-term investments                                |   |                          | 40,477  |   |   |   | 10,586 |   |
| Proceeds      from maturities of short-term investments                           |   |                          | 48,837  |   |   |   | 25,916 |   |
|                                                                              |   |                          |    |   |   |   |   |   |
| Net      cash provided by (used for) investing activities                         |   |                          | 10,610  |   |   |   | (24,818 | ) |
|                                                                              |   |                          |    |   |   |   |   |   |
| Cash      flows provided by (used for) financing activities                       |   |                          |    |   |   |   |   |   |
| Proceeds      from issuance of common stock                                       |   |                          | 2       |   |   |   | 4,623 |   |
| Repurchase      of common stock                                                   |   |                          | --      |   |   |   | (22,327 | ) |
|                                                                              |   |                          |    |   |   |   |   |   |
| Net      cash provided by (used for) financing activities                         |   |                          | 2       |   |   |   | (17,704 | ) |
|                                                                              |   |                          |    |   |   |   |   |   |
| Effect      of exchange rates on cash and cash equivalents                   |   |                          | 736     |   |   |   | 9 |   |
| Net      increase in cash and cash equivalents                                    |   |                          | 29,059  |   |   |   | 7,412 |   |
| Cash      and cash equivalents at beginning of period                             |   |                          | 136,036 |   |   |   | 131,986 |   |
| Cash      and cash equivalents at end of period                                   |   | $                             | 165,095 |   |   | $ | 139,398 |   |
|                                                                              |   |                          |    |   |   |   |   |   |

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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|                                                                     |   | Three      months ended |    |
|--------------------------------------------------------------------------|--------|-------------------------|---------|
| (in      thousands, except per share amounts)                       |   | June      28,2009       |    |   | June      29,2008 |   |
| Net      income (loss)                                                   |   | $                       | (14,121 | ) |   | $ | 9,154 |   |
|                                                                     |   |                    |    |   |   |   |   |   |
| Weighted      average common shares outstanding                          |   |                    | 165,430 |   |   |   | 171,080 |   |
| Dilutive      effect of employee stock options and restricted stockunits |   |                    | --      |   |   |   | 286 |   |
| Weighted      average common shares outstanding, assuming dilution       |   |                    | 165,430 |   |   |   | 171,366 |   |
| Basic      net income (loss) per share                                   |   | $                       | (0.09   | ) |   | $ | 0.05 |   |
| Diluted      net income (loss) per share                                 |   | $                       | (0.09   | ) |   | $ | 0.05 |   |

|                                        |   | Three      months ended |   |
|---------------------------------------------|--------|-------------------------|--------|
|  (in      thousands)                   |   | June      28,2009       |   |   | June      29,2008 |   |
| Cost      of revenue                        |   | $                       | 626    |   |   | $ | 786 |   |
| Research      and development               |   |                    | 2,745  |   |   |   | 5,152 |   |
| Selling,      general and administrative    |   |                    | 889    |   |   |   | 2,191 |   |
| Total      stock-based compensation expense |   | $                       | 4,260  |   |   | $ | 8,129 |   |

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|                                                   |   | Three      months ended |   |
|--------------------------------------------------------|--------|-------------------------|--------|
|  (in      thousands)                              |   | June      28,2009       |   |   | June      29,2008 |   |
| Employee      stock options                            |   | $                       | 3,006  |   |   | $ | 6,128 |   |
| Employee      stock purchase plan (“ESPP”) |   |                    | --     |   |   |   | 878 |   |
| Restricted      stock units (“RSUs”)       |   |                    | 1,292  |   |   |   | 1,345 |   |
| Change      in amounts capitalized in inventory        |   |                    | (38    | ) |   |   | (222 | ) |
| Total      stock-based compensation expense            |   | $                       | 4,260  |   |   | $ | 8,129 |   |

|                                                                      |   | Three      months ended |   |
|---------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                      |   | June      28,2009       |   |   | June      29,2008 |   |
| Stock      option plans:                                                  |   |                    |   |   |   |   |
|      Expected      term                          |   | 4.66      years         |   |   | 4.55      years |   |
|      Risk-free      interest rate                |   |                    | 2.09   | % |   |   | 3.02 | % |
|      Volatility                                  |   |                    | 46.6   | % |   |   | 39.3 | % |
|      Dividend      yield                         |   |                    | 0.0    | % |   |   | 0.0 | % |
|      Weighted      average grant-date fair value |   | $                       | 2.08   |   |   | $ | 4.34 |   |
| ESPP:                                                                     |   |                    |   |   |   |   |   |   |
|      Expected      term                          |   |                    | --     |   |   | 0.25      years |   |
|      Risk-free      interest rate                |   |                    | --     |   |   |   | 1.38 | % |
|      Volatility                                  |   |                    | --     |   |   |   | 35 | % |
|      Dividend      yield                         |   |                    | --     |   |   |   | 0.0 | % |
|      Weighted      average grant-date fair value |   | $                       | --     |   |   | $ | 1.90 |   |

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|                                          |               |   |                                 |   |
|-----------------------------------------------|--------------------|--------|--------------------------------------|--------|
| (in      thousands, except per share amounts) |   Shares |   | Weighted      Average Exercise Price |   |
| Options      outstanding as of March 29, 2009 | 27,544             |   | $                                    | 12.30  |   |
| Granted                                       | 2,673              |   |                                 | 5.05   |   |
| Exercised                                     | (1)                |   |                                 | 1.68   |   |
| Canceled,      forfeited or expired           | (576)              |   |                                 | 14.67  |   |
| Options      outstanding as of June 28, 2009  | 29,640             |   |                                 | 11.60  |   |
| Options      exercisable at June 28, 2009     | 21,462             |   | $                                    | 12.45  |   |

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| (in      thousands)                                          |   | Three      months ended |   |
|--------------------------------------------------------------|--------|-------------------------|--------|
|                                                         |   | June      28, 2009      |   |   | June      29, 2008 |   |
| Net      cash proceeds from options exercised                |   | $                       | 2      |   |   | $ | 1,255 |   |
| Total      intrinsic value of options exercised              |   | $                       | 4      |   |   | $ | 145 |   |
| Realized      excess tax benefits from options exercised (1) |   | $                       | 0      |   |   | $ | 0 |   |

|        (in      thousands, except per share amounts) |   | Shares |   |   | Weighted      Average Grant Date Fair Value |   |
|-----------------------------------------------------------|--------|--------|--------|--------|---------------------------------------------|--------|
| RSU’s      outstanding as of March 29, 2009         |   |   | 1,238  |   |                                        | $      | 12.09 |   |
| Granted                                                   |   |   | 859    |   |                                        |   | 5.05 |   |
| Released                                                  |   |   | (264   | )      |                                        |   | 13.25 |   |
| Forfeited                                                 |   |   | (39    | )      |                                        |   | 12.97 |   |
| Outstanding      at June 28, 2009                         |   |   | 1,794  |   |                                        | $      | 8.53 |   |

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| (in      thousands) Inventories                       |   | June      28,2009 |   |   | March      29,2009 |   |
|------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
| Raw      materials                                         |   | $                 | 5,792  |   |               | $      | 6,876 |   |
| Work-in-process                                            |   |              | 31,374 |   |               |   | 35,252 |   |
| Finished      goods                                        |   |              | 25,622 |   |               |   | 27,594 |   |
|    Total      inventories                   |   | $                 | 62,788 |   |               | $      | 69,722 |   |
|                                                       |   |              |   |   |               |   |   |   |
| Other      long-term obligations                           |   |              |   |   |               |   |   |   |
| Deferred      compensation related liabilities             |   | $                 | 12,031 |   |               | $      | 10,946 |   |
| Long-term      portion of deferred gain on equipment sales |   |              | 270    |   |               |   | 940 |   |
| Long-term      portion of lease impairment obligations     |   |              | 835    |   |               |   | 890 |   |
| Long-term      portion of supplier obligations             |   |              | 1,053  |   |               |   | 1,384 |   |
| Other                                                      |   |              | 135    |   |               |   | 154 |   |
|    Total      other long-term obligations   |   | $                 | 14,324 |   |               | $      | 14,314 |   |
|                                                       |   |              |   |   |               |   |   |   |

| (in      thousands)                               |   | Three      months ended |   |
|---------------------------------------------------|--------|-------------------------|--------|
|                                              |   | June      28,2009       |   |   | March      29, 2009 |   |
| Gross      deferred revenue                       |   | $                       | 18,870 |   |   | $ | 21,302 |   |
| Gross      deferred costs                         |   |                    | 4,099  |   |   |   | 4,764 |   |
| Deferred      income on shipments to distributors |   | $                       | 14,771 |   |   | $ | 16,538 |   |

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|                                                            |   | Fair      Value at Reporting Date Using: |   |
|-----------------------------------------------------------------|--------|------------------------------------------|--------|
| (in      thousands)                                             |   | Level      1                             |   |   | Level      2 |   |   | Total    Balance |   |
| Cash      Equivalents and Short Term Investments:               |   |                                     |   |   |   |   |   |   |   |
| US      government treasuries and agencies securities           |   | $                                        | 73,879 |   |   | $ | -- |   |   | $ | 73,879 |   |
| Money      market funds                                         |   |                                     | 25,575 |   |   |   | -- |   |   |   | 25,575 |   |
| Bank      deposits                                              |   |                                     | --     |   |   |   | 119,717 |   |   |   | 119,717 |   |
| Corporate      bonds                                            |   |                                     | --     |   |   |   | 40,130 |   |   |   | 40,130 |   |
| Corporate      commercial paper                                 |   |                                     | --     |   |   |   | 31,939 |   |   |   | 31,939 |   |
| Asset-backed      securities                                    |   |                                     | --     |   |   |   | 26 |   |   |   | 26 |   |
| Other      Assets:                                              |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Assets      related to non-qualified deferred compensation plan |   |                                     | --     |   |   |   | 10,467 |   |   |   | 10,467 |   |
| Total      assets measured at fair value                        |   | $                                        | 99,454 |   |   | $ | 202,279 |   |   | $ | 301,733 |   |
| Liabilities:                                                    |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency forward contract                          |   |                                     | --     |   |   |   | 206 |   |   |   | 206 |   |
| Non-qualified      deferred compensation obligations            |   |                                     | --     |   |   |   | 12,031 |   |   |   | 12,031 |   |
|                                                            |   | $                                        | --     |   |   | $ | 12,237 |   |   | $ | 12,237 |   |

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|                                                            |   | Fair      Value at Reporting Date Using: |    |
|-----------------------------------------------------------------|--------|------------------------------------------|---------|
| (in      thousands)                                             |   | Level      1                             |    |   | Level      2 |   |   | Total    Balance |   |
| Cash      Equivalents and Short Term Investments:               |   |                                     |    |   |   |   |   |   |   |
| US      government treasuries and agencies securities           |   | $                                        | 108,935 |   |   | $ | -- |   |   | $ | 108,935 |   |
| Money      market funds                                         |   |                                     | 75,531  |   |   |   | -- |   |   |   | 75,531 |   |
| Bank      deposits                                              |   |                                     | --      |   |   |   | 10,110 |   |   |   | 10,110 |   |
| Corporate      bonds                                            |   |                                     | --      |   |   |   | 47,436 |   |   |   | 47,436 |   |
| Corporate      commercial paper                                 |   |                                     | --      |   |   |   | 39,637 |   |   |   | 39,637 |   |
| Municipal      bonds                                            |   |                                     | --      |   |   |   | 1,056 |   |   |   | 1,056 |   |
| Asset-backed      securities                                    |   |                                     | --      |   |   |   | 146 |   |   |   | 146 |   |
| Other      Assets:                                              |   |                                     |    |   |   |   |   |   |   |   |   |   |
| Assets      related to non-qualified deferred compensation plan |   |                                     | --      |   |   |   | 9,668 |   |   |   | 9,668 |   |
| Total      assets measured at fair value                        |   | $                                        | 184,466 |   |   | $ | 108,053 |   |   | $ | 292,519 |   |
| Liabilities:                                                    |   |                                     |    |   |   |   |   |   |   |   |   |   |
| Non-qualified      deferred compensation obligations            |   |                                     | --      |   |   |   | 10,946 |   |   |   | 10,946 |   |
| Total      liabilities measured at fair value                   |   | $                                        | --      |   |   | $ | 10,946 |   |   | $ | 10,946 |   |

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|  (in      thousands)                        |   |  Cost |     |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Estimated      Fair Value |   |
|--------------------------------------------------|--------|------------|----------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|
| Corporate      commercial paper                  |   | $          | 31,940   |   |                        | $      | 2      |                         |   | $      | (2                        | )      |   | $ | 31,939 |   |
| U.S.      government agency securities           |   |       | 73,538   |   |                        |   | 341    |                         |   |   | --                        |   |   |   | 73,879 |   |
| Money      market funds                          |   |       | 25,575   |   |                        |   | --     |                         |   |   | --                        |   |   |   | 25,575 |   |
| Bank      deposits                               |   |       | 119,717  |   |                        |   | --     |                         |   |   | --                        |   |   |   | 119,717 |   |
| Corporate      bonds                             |   |       | 39,923   |   |                        |   | 216    |                         |   |   | (9                        | )      |   |   | 40,130 |   |
| Asset-backed      securities                     |   |       | 26       |   |                        |   | --     |                         |   |   | --                        |   |   |   | 26 |   |
| Total      available-for-sale investments        |   |       | 290,719  |   |                        |   | 559    |                         |   |   | (11                       | )      |   |   | 291,267 |   |
| Less      amounts classified as cash equivalents |   |       | (150,376 | )      |                        |   | --     |                         |   |   | (2                        | )      |   |   | (150,374 | ) |
|    Short-term      investments    |   | $          | 140,343  |   |                        | $      | 559    |                         |   | $      | (9                        | )      |   | $ | 140,893 |   |

|  (in      thousands)                             |   |  Cost |     |   | Gross      Unrealized Gains |   |   | Gross      Unrealized Losses |   |   | Estimated      Fair Value |   |
|-------------------------------------------------------|--------|------------|----------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|
| U.S.      government treasuries and agency securities |   | $          | 108,528  |   |                        | $      | 445    |                         |   | $      | (38                       | )      |   | $ | 108,935 |   |
| Money      market funds                               |   |       | 75,531   |   |                        |   | --     |                         |   |   | --                        |   |   |   | 75,531 |   |
| Corporate      bonds                                  |   |       | 47,452   |   |                        |   | 102    |                         |   |   | (118                      | )      |   |   | 47,436 |   |
| Corporate      commercial paper                       |   |       | 39,634   |   |                        |   | 3      |                         |   |   | --                        |   |   |   | 39,637 |   |
| Bank      deposits                                    |   |       | 10,110   |   |                        |   | --     |                         |   |   | --                        |   |   |   | 10,110 |   |
| Municipal      bonds                                  |   |       | 1,027    |   |                        |   | 29     |                         |   |   | --                        |   |   |   | 1,056 |   |
| Asset-backed      securities                          |   |       | 145      |   |                        |   | 1      |                         |   |   | --                        |   |   |   | 146 |   |
| Total      available-for-sale investments             |   |       | 282,427  |   |                        |   | 580    |                         |   |   | (156                      | )      |   |   | 282,851 |   |
| Less      amounts classified as cash equivalents      |   |       | (122,818 | )      |                        |   | (1     | )                            |   |   | 5                         |   |   |   | (122,814 | ) |
|    Short-term      investments         |   | $          | 159,609  |   |                        | $      | 579    |                         |   | $      | (151                      | )      |   | $ | 160,037 |   |

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| (in      thousands)                                          |   | Cost   |    |   | Estimated      Fair Value |   |
|--------------------------------------------------------------|--------|--------|---------|--------|---------------------------|--------|
| Due      in 1 year or less                                   |   | $      | 253,978 |   |                      | $      | 254,303 |   |
| Due      in 1-2 years                                        |   |   | 31,772  |   |                      |   | 32,036 |   |
| Due      in 2-5 years                                        |   |   | 4,969   |   |                      |   | 4,928 |   |
| Total      investments in available-for-sale debt securities |   | $      | 290,719 |   |                      | $      | 291,267 |   |

|                            |   | Less      than 12 months |   |   | 12      months or Greater |   |   | Total           |   |
|---------------------------------|--------|--------------------------|--------|--------|---------------------------|--------|--------|-----------------|--------|
|  (in      thousands)       |   | Fair      Value          |   |   | Unrealized      Loss      |   |   | Fair      Value |   |   | Unrealized      Loss |   |   | Fair      Value |   |   | Unrealized      Loss |   |
| Corporate      bonds            |   | $                        | 13,025 |   |                      | $      | (9     | )               |   | $ | -- |   |   | $ | -- |   |   | $ | 13,025 |   |   | $ | (9 | ) |
| Corporate      commercial paper |   |                     | 2,500  |   |                      |   | (1     | )               |   |   | -- |   |   |   | -- |   |   |   | 2,500 |   |   |   | (1 | ) |
| Total                           |   | $                        | 15,525 |   |                      | $      | (10    | )               |   | $ | -- |   |   | $ | -- |   |   | $ | 15,525 |   |   | $ | (10 | ) |

|                                   |   | Less      than 12 months |   |   | 12      months or Greater |   |   | Total           |   |
|----------------------------------------|--------|--------------------------|--------|--------|---------------------------|--------|--------|-----------------|--------|
|  (in      thousands)              |   | Fair      Value          |   |   | Unrealized      Loss      |   |   | Fair      Value |   |   | Unrealized      Loss |   |   | Fair      Value |   |   | Unrealized      Loss |   |
| Corporate      bonds                   |   | $                        | 28,629 |   |                      | $      | (105   | )               |   | $ | 795 |   |   | $ | (13 | ) |   | $ | 29,424 |   |   | $ | (118 | ) |
| U.S.      government agency securities |   |                     | 19,212 |   |                      |   | (38    | )               |   |   | -- |   |   |   | -- |   |   |   | 19,212 |   |   |   | (38 | ) |
| Total                                  |   | $                        | 47,841 |   |                      | $      | (143   | )               |   | $ | 795 |   |   | $ | (13 | ) |   | $ | 48,636 |   |   | $ | (156 | ) |

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| (in      thousands)  |   | Notional      ValueLocal      Currency |   |   | Notional      Value USD |   |   | Fair      Valueloss USD    (a) |   |
|----------------------|--------|----------------------------------------|--------|--------|-------------------------|--------|--------|--------------------------------|--------|
| Canadian      Dollar |   | $                                      | 50,000 |   |                    | $      | 43,407 |                           |   | $ | (206 | ) |
|                 |   | $                                      | 50,000 |   |                    | $      | 43,407 |                           |   | $ | (206 | ) |

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| (in      millions)                   |   |   |   |
|-------------------------------------------|--------|--------|--------|
| Cash      paid                            |   | $      | 6.1    |   |
| Hold      back payment due within 45 days |   |   | 0.2    |   |
| Total      purchase price                 |   | $      | 6.3    |   |

| (in      millions)            |   | Fair      Value |   |
|------------------------------------|--------|-----------------|--------|
| Net      tangible assets acquired  |   | $               | 0.2    |   |
| Amortizable      intangible assets |   |            | 6.0    |   |
| Goodwill                           |   |            | 0.1    |   |
| Total      purchase price          |   | $               | 6.3    |   |

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|                                                                         |   | Fair      Value(in      millions) |   |
|------------------------------------------------------------------------------|--------|-----------------------------------|--------|
| Amortizable      intangible assets:                                          |   |                              |   |
|     Existing      Technologies                           |   | $                                 | 4.6    |   |
|     Customer      Relationships                          |   |                              | 1.1    |   |
|     In-process      research and development (IPR&D) |   |                              | 0.3    |   |
| Total                                                                        |   | $                                 | 6.0    |   |

| (in      millions)                    |   |   |   |
|--------------------------------------------|--------|--------|--------|
| Cash      paid                             |   | $      | 19.4   |   |
| Acquisition-related      transaction costs |   |   | 0.7    |   |
| Total      purchase price                  |   | $      | 20.1   |   |

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| (in      millions)            |   | Fair      Value |   |
|------------------------------------|--------|-----------------|--------|
| Net      tangible assets acquired  |   | $               | 0.6    |   |
| Amortizable      intangible assets |   |            | 4.7    |   |
| IPR&D                          |   |            | 5.6    |   |
| Goodwill                           |   |            | 9.2    |   |
| Total      purchase price          |   | $               | 20.1   |   |

|                                                |   | Fair      Value(in      millions) |   |
|-----------------------------------------------------|--------|-----------------------------------|--------|
| Amortizable      intangible assets:                 |   |                              |   |
|     Existing      Technologies  |   | $                                 | 3.7    |   |
|     Customer      Relationships |   |                              | 0.5    |   |
|     Trade      Name             |   |                              | 0.5    |   |
| Total                                               |   | $                                 | 4.7    |   |

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|                                                 |   | June      28, 2009 |    |
|------------------------------------------------------|--------|--------------------|---------|
|                                                 |   |               |    |
|  (in      thousands)                            |   | Gross      assets  |    |   | Accumulated      amortization |   |   | Net      assets |   |
| Goodwill                                             |   | $                  | 89,463  |   |   | $ | -- |   |   | $ | 89,463 |   |
|                                                 |   |               |    |   |   |   |   |   |   |   |   |   |
| Identified      intangible assets:                   |   |               |    |   |   |   |   |   |   |   |   |   |
| Existing      technology                             |   |               | 241,093 |   |   |   | (202,051 | ) |   |   | 39,042 |   |
| Trademarks                                           |   |               | 9,360   |   |   |   | (8,896 | ) |   |   | 464 |   |
| Customer      relationships                          |   |               | 139,409 |   |   |   | (127,867 | ) |   |   | 11,542 |   |
| Foundry      & Assembler relationships           |   |               | 64,380  |   |   |   | (64,376 | ) |   |   | 4 |   |
| Non-compete      agreements                          |   |               | 52,958  |   |   |   | (52,958 | ) |   |   | -- |   |
| IPR&D                                            |   |               | 278     |   |   |   | -- |   |   |   | 278 |   |
| Other                                                |   |               | 31,053  |   |   |   | (31,053 | ) |   |   | -- |   |
| Subtotal,      identified intangible assets          |   |               | 538,531 |   |   |   | (487,201 | ) |   |   | 51,330 |   |
| Total      goodwill and identified intangible assets |   | $                  | 627,994 |   |   | $ | (487,201 | ) |   | $ | 140,793 |   |

|                                                 |   | March      29, 2009 |    |
|------------------------------------------------------|--------|---------------------|---------|
|                                                 |   |                |    |
|  (in      thousands)                            |   | Gross      assets   |    |   | Accumulated      amortization |   |   | Net      assets |   |
|                                                 |   |                |    |   |   |   |   |   |   |
| Goodwill                                             |   | $                   | 89,404  |   |   | $ | -- |   |   | $ | 89,404 |   |
|                                                 |   |                |    |   |   |   |   |   |   |   |   |   |
| Identified      intangible assets:                   |   |                |    |   |   |   |   |   |   |   |   |   |
| Existing      technology                             |   |                | 236,423 |   |   |   | (198,133 | ) |   |   | 38,290 |   |
| Trademarks                                           |   |                | 9,360   |   |   |   | (8,878 | ) |   |   | 482 |   |
| Customer      relationships                          |   |                | 138,317 |   |   |   | (126,586 | ) |   |   | 11,731 |   |
| Foundry      & Assembler relationships           |   |                | 64,380  |   |   |   | (64,374 | ) |   |   | 6 |   |
| Non-compete      agreements                          |   |                | 52,958  |   |   |   | (52,958 | ) |   |   | -- |   |
| Other                                                |   |                | 31,053  |   |   |   | (31,053 | ) |   |   | -- |   |
| Subtotal,      identified intangible assets          |   |                | 532,491 |   |   |   | (481,982 | ) |   |   | 50,509 |   |
| Total      goodwill and identified intangible assets |   | $                   | 621,895 |   |   | $ | (481,982 | ) |   | $ | 139,913 |   |

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|                                       |   | Three      months ended |   |
|--------------------------------------------|--------|-------------------------|--------|
|  (in      thousands)                  |   | June      28,2009       |   |   | June      29,2008 |   |
|                                       |   |                    |   |   |   |   |
| Existing      technology                   |   | $                       | 3,918  |   |   | $ | 14,094 |   |
| Trademarks                                 |   |                    | 18     |   |   |   | 303 |   |
| Customer      relationships                |   |                    | 1,281  |   |   |   | 5,910 |   |
| Foundry      & assembler relationships |   |                    | 2      |   |   |   | 351 |   |
| Non-compete      agreements                |   |                    | --     |   |   |   | 134 |   |
| Other                                      |   |                    | --     |   |   |   | 67 |   |
| Total                                      |   | $                       | 5,219  |   |   | $ | 20,859 |   |

| Fiscal      year          |   | Amount |   |
|---------------------------|--------|--------|--------|
| Remainder      of FY 2010 |   | $      | 13,195 |   |
| 2011                      |   |   | 14,840 |   |
| 2012                      |   |   | 10,439 |   |
| 2013                      |   |   | 5,448  |   |
| 2014                      |   |   | 2,886  |   |
| Thereafter                |   |   | 4,244  |   |
| Total                     |   | $      | 51,052 |   |

Note 13

|                                             |   | Three      months ended |    |
|--------------------------------------------------|--------|-------------------------|---------|
|  (in      thousands)                        |   | June      28,2009       |    |   | June      29,2008 |   |
| Net      income (loss)                           |   | $                       | (14,121 | ) |   | $ | 9,154 |   |
| Currency      translation adjustments            |   |                    | 687     |   |   |   | 31 |   |
| Change      in net unrealized gain on investment |   |                    | 127     |   |   |   | (299 | ) |
| Comprehensive      income (loss)                 |   | $                       | (13,307 | ) |   | $ | 8,886 |   |

|                                                   |   |              |   |
|--------------------------------------------------------|--------|-------------------|--------|
|  (in      thousands)                              |   | June      28,2009 |   |   | March      29,2009 |   |
| Cumulative      translation adjustments                |   | $                 | 1,133  |   |   | $ | 446 |   |
| Unrealized      gain on available-for-sale investments |   |              | 551    |   |   |   | 424 |   |
| Total      accumulated other comprehensive income      |   | $                 | 1,684  |   |   | $ | 870 |   |

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| v   | Communications      segment: includes network search engines (NSEs), Rapid I/O switching      solutions, flow-control management devices, FIFOs, integrated      communications processors, high-speed SRAM, military application, digital      logic and telecommunications. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v   | Computing      and Consumer segment: includes clock generation and distribution products,      PCI Express switching solutions, high-performance server memory      interfaces, multi-port products, PC audio and video    products. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | Three      months ended |    |
|----------------------------------|--------|-------------------------|---------|
|  (in      thousands)        |   | June      28,2009       |    |   | June      29,2008 |   |
| Communications                   |   | $                       | 57,655  |   |   | $ | 86,661 |   |
| Computing      and Consumer      |   |                    | 58,299  |   |   |   | 101,547 |   |
| Total      consolidated revenues |   | $                       | 115,954 |   |   | $ | 188,208 |   |

|                                                                              |   | Three      months ended |    |
|-----------------------------------------------------------------------------------|--------|-------------------------|---------|
|  (in      thousands)                                                         |   | June      28,2009       |    | June      29,2008 |   |
| Communications                                                                    |   | $                       | 17,561  |   |   | $ | 30,122 |   |
| Computing      and Consumer                                                       |   |                    | (15,570 | ) |   |   | 7,649 |   |
| Unallocated      expenses:                                                        |   |                    |    |   |   |   |   |   |
|      Amortization      of intangible assets              |   |                    | (5,219  | ) |   |   | (20,859 | ) |
|      Acquisition      related costs and other            |   |                    | (3,593  | ) |   |   | 3 |   |
|      Severance      and retention costs                  |   |                    | (1,479  | ) |   |   | (834 | ) |
|      Facility      closure costs                         |   |                    | (23     | ) |   |   | (77 | ) |
|      Stock-based      compensation expense               |   |                    | (4,260  | ) |   |   | (8,129 | ) |
|      Note      receivable net of deferred gain write off |   |                    | (2,002  | ) |   |   | -- |   |
|      Interest      income and other                      |   |                    | 1,425   |   |   |   | 1,465 |   |
|      Interest      expense                               |   |                    | (19     | ) |   |   | (18 | ) |
| Income      (loss) before income taxes                                            |   |  $                 | (13,179 | ) |   | $ | 9,322 |   |

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|  (in      thousands)         |   | Cost      of goods sold |   |   | Operating      Expenses |   |
|-----------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                              |   | Restructuring           |   |   | Restructuring           |   |
| Balance      as of March 29, 2009 |   | $                       | 575    |   |                    | $      | 3,649 |   |
| Provision                         |   |                    | 55     |   |                    |   | 1,421 |   |
| Cash      payments                |   |                    | (274   | )      |                    |   | (2,578 | ) |
| Balance      as of June 28, 2009  |   | $                       | 356    |   |                    | $      | 2,492 |   |

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ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS

| §   | Communications      segment: includes network search engines (NSEs), Rapid I/O switching      solutions, flow-control management devices, FIFOs, multi-port products,      integrated communications processors, high-speed SRAM, military      application, digital logic, and  telecommunications. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Computing      and Consumer segment: includes clock generation and distribution products,      PCI Express switching solutions, high-performance server memory      interfaces, PC audio and videoproducts. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (in      thousands)         |   | Three      months ended |    |
|-----------------------------|--------|-------------------------|---------|
|                        |   | June      28, 2009      |    |   | June      29, 2008 |   |
| Communications              |   | $                       | 57,655  |   |   | $ | 86,661 |   |
| Computing      and Consumer |   |                    | 58,299  |   |   |   | 101,547 |   |
| Total                       |   | $                       | 115,954 |   |   | $ | 188,208 |   |

| (in      thousands)                               |   | Three      months ended |   |
|---------------------------------------------------|--------|-------------------------|--------|
|                                              |   | June      28, 2009 |   |   | March      29, 2009 |   |
| Gross      deferred revenue                       |   | $                       | 18,870 |   |   | $ | 21,302 |   |
| Gross      deferred costs                         |   |                    | 4,099  |   |   |   | 4,764 |   |
| Deferred      income on shipments to distributors |   | $                       | 14,771 |   |   | $ | 16,538 |   |

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| (in      thousands) |   | Three      months ended |   |
|---------------------|--------|-------------------------|--------|
|                |   | June      28, 2009      |   |   | June      29, 2008 |   |
| Gross      Profit   |   | $                       | 47,165 |   |   | $ | 84,459 |   |
| Gross      Margin   |   |                    | 41     | % |   |   | 45 | % |

|                                     |   | Three      months ended |   |
|------------------------------------------|--------|-------------------------|--------|
| (in      thousands)                      |   | June      28,2009       |   |   | %      of NetRevenues |   |   | June      29,2008 |   |   | %      of Net Revenues |   |
| Research      and Development            |   | $                       | 36,315 |   |   |   | 31 | % |   | $ | 43,619 |   |   |   | 23 | % |
| Selling,      General and Administrative |   | $                       | 25,435 |   |   |   | 22 | % |   | $ | 32,965 |   |   |   | 18 | % |

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| (in      thousands)                 |   | Three      months ended |   |
|-------------------------------------|--------|-------------------------|--------|
|                                |   | June      28, 2009      |   |   | June      29, 2008 |   |
| Interest      income                |   | $                       | 544    |   |   | $ | 1,594 |   |
| Other      income (expense), net    |   |                    | 881    |   |   |   | (129 | ) |
| Interest      income and other, net |   | $                       | 1,425  |   |   | $ | 1,465 |   |

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| ·   | Amortization      of intangible assets was $5.2 million in the first quarter of fiscal 2010      compared to $20.9 million in the same period one year ago.  The      decrease is primarily attributable to the lower carrying value of      intangible assets in the first quarter of fiscal 2010 as we recorded a      significant impairment charges in the third and fourth quarter of fiscal      2009.  In addition, the decrease is due to a portion of      intangible assets, which are being amortized on an accelerated method,      resulting in decreased amortization expense over  time. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Stock-based      compensation was $4.3 million in the first quarter of fiscal 2010 compared      to $8.1 million in the same period one year ago.  The decrease      is due to lower valuation of new grants and lower headcount in the first      quarter of fiscal 2010 as compared to the first quarter of fiscal 2009 and      expiration of 1984 ESPP plan on March 29,2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Depreciation      expense was $6.0 million in the first quarter of fiscal 2010 compared to      $6.6 million in the first quarter of fiscal 2009.  The decrease      is primarily attributable to our manufacturing equipment as a large      portion of these assets are now fully depreciated and our continuous      efforts to control capital assetpurchases. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      recorded a $2.0 million impairment charge related to a note receivable net      of deferred gain from one of our subcontractors in connection with the      sale of equipment in fiscal 2007.  We did not record such      charges in the first quarter of fiscal2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | A      decrease in inventory of $7.1 million in first quarter of fiscal 2010      compared to a decrease in inventory of $1.0 million in the first quarter      of fiscal 2009.  The decrease in inventory in both periods is      due to our efforts to align our inventory levels to meet current      demand. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An      increase in accounts payable of $5.6 million in the first quarter of      fiscal 2010 compared to an increase of $0.7 million in the first quarter      of fiscal 2009.  The increase in both periods is primarily      attributable to the timing of payments and increase in the volume of      foundry and subcontractor activity. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in accounts receivable of $3.6 million in the first quarter of      fiscal 2010 compared to a decrease of $0.3 million in the first quarter of      fiscal 2009.  The decrease in both periods reflects our cash      collection efforts and timing of shipments in the  quarter. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in accrued compensation of $2.7 million in the first quarter of      fiscal 2010 compared to a decrease of $5.4 million in the first quarter of      fiscal 2009.  The decrease in accrued compensation in the first      quarter of fiscal 2009 is primarily attributable to a $3.2 million      reduction in performance-related bonuses as a result of our year end      payout in May 2008, offset by additional accruals related to our fiscal      2009 bonus program; while there is no decrease related to the      performance-related bonuses as we did not accrue the expense in the fourth      quarter of fiscal 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in prepayments and other assets of $1.2 million in the first      quarter of fiscal 2010 compared to a decrease of $5.6 million in the first      quarter of fiscal 2009.  The decrease in the first quarter of      fiscal 2010 is primarily attributable to $1.4 million wafers received from      one of our foundries as we prepaid the amount in the fourth quarter of      fiscal 2009, a $0.2 million reduction in interest receivable due to the      decrease in interest rates during the quarter and normal recurring prepaid      amortization, partially offset by additional software maintenance      agreements signed and paid during the quarter.  The decrease in      the first quarter of fiscal 2009 is primarily due to the receipt of      interest from the IRS for the tax settlement related to the ICS      pre-acquisition income tax returns along with a $1.0 million reduction in      other receivable due to cash collections in the quarter and the normal      recurring prepaid amortization. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in income taxes receivable/payable of $1.0 million in the first      quarter of fiscal 2010 compared to a decrease of $3.3 million in the first      quarter of fiscal 2009.  The decrease in the first quarter of      fiscal 2010 is primarily attributable to the refundable R&D tax      credits in the U.S. The decrease in the first quarter of fiscal 2009 is      primarily attributable to the tax settlement with the IRS for ICS      pre-acquisition tax returns. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A      decrease in other accrued and long term liabilities of $0.2 million in the      first quarter of fiscal 2010 compared to a decrease of $1.1 million in the      first quarter of fiscal 2009. The decrease in the first quarter of fiscal      2010 is primarily attributable to a $1.3 million decrease in accruals      related to our restructuring action in the fourth quarter of fiscal 2009      and $0.3 million decrease in accrued commissions as a result of lower      revenues and commission rates in the first quarter of fiscal 2010. The      decrease was partially offset by a $1.9 million increase in legal accruals      as a result of increased third party services related to our merger and      acquisition activities and $1.1 million increase in the fair value of our      executive deferred compensation plan due to stock market performance      improved in the quarter.  The decrease in fiscal 2009 is      primarily attributable to a payment of $1.2 million related to the      executive transition agreement signed with our former CEO, partially      offset by additional reserves related to our restructuring      actions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 4.   CONTROLS AND PROCEDURES

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PART II    OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

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ITEM 1A.  RISK FACTORS

| ·   | Global      market and economic conditions, including those related to the credit      markets, may adversely affect our business and results of      operations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      cyclicality of the semiconductor industry and industry-wide wafer      processing capacity; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Changes      in the demand for and mix of products sold and in the markets we and our      customers serve; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Competitive      pricing pressures; |
|--------------------|-------------------------------------|

| ·   | The      success and timing of new product and process technology announcements and      introductions from us or ourcompetitors; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Potential      loss of market share among a concentrated group of    customers; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Difficulty      in attracting and retaining keypersonnel; |
|--------------------|-----------------------------------------------------------|

| ·   | Difficulty      in predicting customer productrequirements; |
|--------------------|-------------------------------------------------------------|

| ·   | Production      difficulties and interruptions caused by our complex manufacturing and      logistics operations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Difficulty      in managing fixed costs of our manufacturing capability in the face of      changes in demand; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Reduced      control over our manufacturing and product delivery as a result of our      increasing reliance on subcontractors, foundry and other manufacturing      services; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Costs      and other issues relating to future  acquisitions; |
|--------------------|---------------------------------------------------------------|

| ·   | Availability      and costs of raw materials from a limited number of    suppliers; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | Political      and economic conditions in various geographic  areas; |
|--------------------|----------------------------------------------------------------------|

| ·   | Costs      associated with other events, such as intellectual property disputes or      other litigation; and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Legislative,      tax, accounting, or regulatory changes or changes in their      interpretation. |
|--------------------|---------------------------------------------------------------------------------------------------|

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| ·   | Terminate      contracts at its convenience; |
|--------------------|----------------------------------------------|

| ·   | Terminate,      modify or reduce the value of existing contracts, if budgetary constraints      or needs change; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | Cancel      multi-year contracts and related orders, if funds become      unavailable; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | Adjust      contract costs and fees on the basis of audits performed by U.S.      government agencies; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | Control      and potentially prohibit the export of our  products; |
|--------------------|--------------------------------------------------------------------|

| ·   | Require      that the company continue to supply products despite the expiration of a      contract under certaincircumstances; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Require      that the company fill certain types of rated orders for the U.S.      government prior to filling any orders for other      customers;  and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Suspend      us from receiving new contracts pending resolution of any alleged      violations of procurement laws orregulations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      need to bid on programs prior to completing the necessary design, which      may result in unforeseen technological difficulties, delays and/or cost      overruns; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      difficulty in forecasting long-term costs and schedules and the potential      obsolescence of products related to long-term fixed price contracts;      and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      need to transfer and obtain security clearances and export licenses, as      appropriate. |
|--------------------|----------------------------------------------------------------------------------------------------|

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| (percentage      of total revenues) |   | First      three months of fiscal 2010 |   |   | Fiscal 2009 |   |   | Fiscal 2008 |   |
|-------------------------------------|--------|----------------------------------------|--------|--------|------------------|--------|--------|------------------|--------|
| Americas                            |   |                                   | 20     | %      |             |   | 20     | %                |   |   | 28 | % |
| Asia      Pacific                   |   |                                   | 65     | %      |             |   | 63     | %                |   |   | 56 | % |
| Japan                               |   |                                   | 8      | %      |             |   | 9      | %                |   |   | 9 | % |
| Europe                              |   |                                   | 7      | %      |             |   | 8      | %                |   |   | 7 | % |
| Total                               |   |                                   | 100    | %      |             |   | 100    | %                |   |   | 100 | % |

| ·   | Political      instability and acts of war or terrorism, which could disrupt our      manufacturing and logisticalactivities; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Regulations      regarding use of local employees andsuppliers; |
|--------------------|-----------------------------------------------------------------|

| ·   | Currency      controls and fluctuations, devaluation of foreign currencies, hard      currency shortages and exchange rate  fluctuations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes      in local economic conditions; |
|--------------------|--------------------------------------------|

| ·   | Governmental      regulation of taxation of our earnings and those of our personnel;      and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | Changes      in tax laws, import and export controls, tariffs and freight      rates. |
|--------------------|---------------------------------------------------------------------------------------|

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIESAND USE OF PROCEEDS

| Period                                     |   | Total Number      of Shares Purchased |   |   | Average      Price Paid Per Share |   |   | Total      Number of Shares Purchased as Part of Publicly Announced Plans      or Programs |   |   | Approximate      Dollar Value of Shares that May Yet Be Purchased Under the Plans or      Programs |   |
|--------------------------------------------|--------|--------------------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|
| March      30, 2009 – April 26, 2009 |   |                                       | --     |   |                              |   | --     |                                                                                            |   |   | --                                                                                                 |   |   | $ | 77,894,774 |   |
| April      27, 2009 – May 24, 2009   |   |                                       | --     |   |                              |   | --     |                                                                                            |   |   | --                                                                                                 |   |   | $ | 77,894,774 |   |
| May      25, 2009 – June 28, 2009    |   |                                       | --     |   |                              |   | --     |                                                                                            |   |   | --                                                                                                 |   |   | $ | 77,894,774 |   |
| Total                                      |   |                                       | --     |   |                              |   | --     |                                                                                            |   |   | --                                                                                                 |   |   |   |   |   |

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS

ITEM 5. OTHER INFORMATION

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ITEM 6.    EXHIBITS

| Exhibitnumber |   | Description |
|---------------|--------|-------------|
|          |   |        |
|          | 31.1   |        | Certification      of Chief Executive Officer as required by Rule 13a-14(a) of the Securities      Exchange Act of 1934, as amended, dated August 6, 2009. |
|          | 31.2   |        | Certification      of Chief Financial Officer as required by Rule 13a-14(a) of the Securities      Exchange Act of 1934, as amended, dated August 6, 2009. |
|          | 32.1   |        | Certification      of Chief Executive Officer as required by Rule 13a-14(b) of the Securities      Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 dated August      6, 2009. |
|          | 32.2   |        | Certification      of Chief Financial Officer as required by Rule 13a-14(b) of the Securities      Exchange Act of 1934, as amended and 18 U.S.C. Section 1350 dated August      6, 2009. |

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SIGNATURES

|                      |   | INTEGRATED      DEVICE TECHNOLOGY, INC.                                                                                                              |
|---------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| Date:      August 6, 2009 |   |  /S/ THEODORE L. TEWKSBURY IIITheodore      L.Tewksbury IIIPresident and Chief Executive      Officer                                                |
| Date:      August 6, 2009 |   |  /S/ RICHARD D. CROWLEY, JR.Richard      D. Crowley, Jr.Vice      President, Chief Financial Officer(Principal Financial and      AccountingOfficer) |

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| Exhibitnumber |   | Description |
|---------------|--------|-------------|
|          |   |        |
|          | 31.1   |        | Certification      of Chief Executive Officer as required by Rule 13a-14(a) of the Securities      Exchange Act of 1934, as amended, dated August 6, 2009. |
|          | 31.2   |        | Certification      of Chief Financial Officer as required by Rule 13a-14(a) of the Securities      Exchange Act of 1934, as amended, dated August 6, 2009. |
|          | 32.1   |        | Certification      of Chief Executive Officer as required by Rule 13a-14(b) of the Securities      Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350 dated August      6, 2009. |
|          | 32.2   |        | Certification      of Chief Financial Officer as required by Rule 13a-14(b) of the Securities      Exchange Act of 1934, as amended and 18 U.S.C. Section 1350 dated August      6, 2009. |

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