Operator: Good day everyone and welcome to today’s Fairchild Semiconductor Third Quarter 2011 Earnings Conference Call. This call is being recorded.
At this time, it is my pleasure to turn the call over to Mr. Dan Janson. Please go ahead, sir.
Dan Janson - VP, IR: Thanks. Good morning and thank you for dialing into Fairchild Semiconductor’s third quarter 2011 financial results conference call. With me today is Mark Thompson, Fairchild’s President and CEO, and Mark Frey, our Executive Vice President and CFO.
Let me begin by mentioning that we will be attending the UBS Global Tech & Services Conference on November 16th in New York; and the Credit Suisse Technology Conference in Scottsdale later in November.
We’ll start today’s call with Mark Frey who will review our third quarter financial results and discuss the current status of fourth quarter business. Mark Thompson will then discuss our product line results, end markets, and operational performance in more detail.
Finally, we’ll reserve time for questions and answers. This call is scheduled to last approximately 60 minutes and is being simultaneously webcast from the Investor Relations section of our website at fairchildsemi.com. The replay of this call will be publicly available for approximately 30 days.
Fairchild management will be making forward-looking statements in this conference call. These statements, including all statements about future results and performance are made based on assumptions and estimates that involve risks and uncertainties. Many factors could cause actual results to differ materially from those expressed in forward-looking statements. A discussion of these risk factors is provided in the quarterly and annual reports we file with the SEC.
In addition, during this call, we may refer to adjusted or financial measures that are not prepared according to Generally Accepted Accounting Principles. We use non-GAAP measures because we believe they provide useful information about the operating performance of our businesses that should be considered by investors in conjunction with GAAP measures that we also provide.
You can find a reconciliation of non-GAAP to comparable GAAP measures at the Investor Relations section of our website at fairchildsemi.com. The website also contains a variety of useful information for investors, including an extensive financial section to facilitate your investment analysis.
Now, I’ll turn the discussion over to Mark Frey.
Mark S. Frey - EVP, CFO and Treasurer: Thanks, Dan. Good morning and thank you for joining us. I’m sure most of you have had a chance to review our earnings press release, so I’ll focus on just the key points in my comments. In the third quarter, our distribution sell through was down 9% sequentially, which was well below our original expectations, while sales into our direct OEM customers were modestly higher.
Accordingly, we reduced shipments and factory loadings during the quarter, which impacted margins but will allow us to maintain a lean supply chain as we manage through the current cycle.
We’re controlling cost very aggressively and will keep the reins tight until we are able to start growing sales and margins again.