We continue to believe this is a second half story, but need to see revenue growth return year-over-year given this is the third-quarter in a row of revenue estimate reductions.

We believe both revenue growth and margins are within the range of guidance given in the third-quarter earnings release and feel comfortable with our estimates for the fourth quarter.

The prognosis is excellent. He should return the second half of the year, hopefully at Saratoga.

Contract manufacturers have seen their inventory grow 104 percent year-to-date, versus revenue growth of 52 percent, while distributors have seen a 24 percent increase in inventory in the past six months, versus a revenue increase of 15 percent.

We believed that Cisco's results would further magnify the inventory problems facing their semiconductor suppliers -- and they did. While revenue increased 14 percent from the previous quarter, total inventory increased 59 percent and raw materials increased 335 percent.

We're getting to the latter half of the year. and typically, the industry sells close to 20 percent more PCs in the second half versus the first half. People are getting ready in anticipation of a much stronger second half of the year.