Gross margin was 56.4% of revenue;

Diluted EPS from continuing operations was $0.08, which includes a $0.10 per share impact from restructuring;

Cash and short-term investments at the end of first quarter of fiscal 2009 totaled $1.3 billion;

Operating income for the first quarter was $20 million, and diluted EPS from continuing operations was $0.08. These financial results include restructuring charges of $42 million, or $0.10 per share.

During the first quarter, we reduced non-GAAP operating expenses by 13% sequentially and constrained inventory growth as deteriorating economic conditions continued to pressure end-market demand, said president and chief executive officer Jerald G. Fishman. In addition to executing immediate cost actions, we continued to drive the process we began long before the downturn to heighten our focus on market opportunities that offer attractive growth and profitability, and to streamline our manufacturing operations.

Fishman continued, We’re further concentrating our investments on core technologies that have enabled us to build the strongest signal processing brand in the industry. At the same time, we’re driving initiatives to fundamentally reshape our infrastructure costs which, along with further spending reductions, are designed to maximize our near- and long-term profitability.

Summary: first quarter of fiscal 2009:

Gross margin was $269 million, or 56.4% of revenue, compared to $404 million, or 61.1% of revenue, in the immediately prior quarter, and $376 million, or 61.2% of revenue, in the first quarter of fiscal 2008. The sequential decline in gross margin was primarily due to the company’s reduction in manufacturing output as planned and additional inventory reserves due to lower demand. This was partially offset by the benefits of an improved product mix.

Restructuring charges of $42 million were recorded in the first quarter of fiscal 2009 in connection with facility consolidations and closures and other cost reduction efforts.

Operating expenses were $249 million, an increase of $6 million, or 3%, from the immediately prior quarter and an increase of $20 million, or 8%, from the first quarter of fiscal 2008.

Excluding restructuring charges of $42 million, non-GAAP operating expenses were $208 million, a decrease of $32 million, or 13%, compared to the immediately prior quarter, and a decrease of $22 million, or 10%, compared to the first quarter of fiscal 2008.

Operating income from continuing operations was $20 million, or 4.1% of revenue, compared to $161 million, or 24.3% of revenue, in the immediately prior quarter, and $146 million, or 23.8% of revenue, in the same period one year ago.

Excluding restructuring charges of $42 million, non-GAAP operating income from continuing operations was $61 million, or 12.9% of revenue, compared to $164 million, or 24.8% of revenue, in the immediately prior quarter, and $146 million, or 23.8% of revenue, in the same period one year ago.

Excluding restructuring charges of $0.10 per share, non-GAAP diluted EPS from continuing operations was $0.18, compared to $0.49 in the immediately prior quarter and $0.40 in the same period one year ago.

Net cash provided by operating activities was $60 million. Capital expenditures were $22 million and cash dividends of $58 million were paid during the first quarter of fiscal 2009.

Cash and short-term investmentsat the end of the first quarter of fiscal 2009 totaled about $1.3 billion.

Accounts receivable at the end of the first quarter of fiscal 2009 decreased by about $80 million, or 25%, compared to the immediately prior quarter. Days sales outstanding in the first quarter of fiscal 2009 was 45 days, compared to 44 days at the end of the immediately prior quarter.

Inventory at the end of the first quarter of fiscal 2009 increased by about $6 million, or 2%, compared to the immediately prior quarter. Inventory of the company’s products at distributors declined by $35 million compared to the immediately prior quarter. Days cost of sales in inventory was 141 days at the end of the first quarter of fiscal 2009, compared to 112 days at the end of the immediately prior quarter.

End market and product revenue highlights:

Revenue from industrial customers, 54% of total revenue, decreased 24% from the immediately prior quarter and 22% from the same period one year ago. The economic slowdown impacted spending across our broad-base of industrial customers, albeit to varying degrees. As expected, revenue from automotive customers showed the largest quarter-to-quarter decrease as a result of general weakness in the global automotive sector. Most other industrial application areas declined to a lesser extent than the automotive sector.

Revenue from communications customers, 27% of total revenue, decreased 22% from the immediately prior quarter and 3% from the same period one year ago. Revenue from wireless handset customers experienced the largest sequential and year-over-year%age declines. Revenue from basestation customers declined sequentially, but increased on a year-over-year basis.

Revenue from consumer customers, 16% of total revenue, decreased 42% sequentially and 40% year-to-year, with revenues declining across all consumer electronics applications, consistent with the global decline in consumer spending.

Revenue from computer customers, 3% of total revenue, decreased 38% from the immediately prior quarter and 35% from the same quarter a year ago, in line with the worldwide decline in PC sales.

Analog product revenue, 91% of total revenue, declined 27% from the immediately prior quarter and 21% year-over-year. Together, data converters and amplifiers contributed 74% of total revenue for the quarter.

General purpose digital signal processing (DSP) products, 8% of total revenue, decreased 34% sequentially and 27% year-over-year.

Outlook: Second Quarter of Fiscal 2009

Regarding the revenue outlook for the company for the second quarter of fiscal 2009, Fishman stated, Orders through December remained weak, but began to stabilize in January and early February. Our book-to-bill ratio for the first quarter, as measured by end customer bookings, was about 0.9. At this point in the cycle, given our short lead times and the continuing economic uncertainty, we are receiving a significant portion of new orders as turns orders rather than as longer-term backlog. Therefore, we continue to have limited visibility for the next few months. As a result, we estimate that revenue for the second quarter will decline by 5% to 15% compared to the first quarter.

Fishman continued, Maximizing current and future profitability, while positioning ourselves to capitalize on the opportunities that will emerge when the downturn reverses, warrants us taking additional steps in the second quarter to permanently reduce spending. First, as previously disclosed, we are concluding the consolidation of our 6-inch and 8-inch fabs in Ireland. We are also accelerating our plans to consolidate our two remaining U.S. fabs. In addition, we anticipate recording a restructuring charge in the second quarter which has not been precisely determined as of yet.

As a result of the impact of restructuring actions and further spending reductions, we expect second quarter operating expenses to decrease by an additional 3% to 4% sequentially. Combined with significant cost reductions in the first quarter, operating expenses for the second quarter are expected to be down 16% to 17% on a cumulative basis from the fourth quarter of fiscal 2008.