Results were above lowered expectation. Company remained cautious on near-term business outlook citing weak demand due to slowing economy. Gross margin came in at 48.8 percent from 51.7 percent last quarter.
Analysts expect further deterioration in gross margin going forward.
Company experienced weakness in bookings in all geographic regions with US, Taiwan and Asia-Pacific were the weakest. Company saw an increase in inventory with inventory days rising from 97 days last quarter to 111 days. This could lead to a write down in inventory ahead. No copying or distribution is permitted. The risk of investing in stocks and options can be substantial.