We ended the year with over a billion dollars in cash reserves, a 21 percent return on invested capital and a stronger analog portfolio. Our goal in fiscal 2006 is to drive gross margins even higher.

Business conditions were stronger than we had originally anticipated. We reached our interim goal of 60 percent gross margin earlier than we expected and at the same time continued to gain market share in the analog standard linear market.

Our third quarter typically reflects a post-holiday seasonal decline in revenues. Although bookings picked up in October and November, it is too early to tell whether that momentum will carry over enough to offset the normal seasonal pattern.

I'm pleased with another quarter of strong growth in which our core business revenues increased by 26 percent over last year's second quarter, led by 36 percent growth in analog sales.

We have entered the fall with much better backlog in place for delivery in the second quarter. We are looking for continued meaningful improvement in both revenue and profitability in the second quarter.

We are ahead of schedule on the return to profits plan we announced on May 5.