Apr 25, 2018 • 05:00 pm ET



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Roop K. Lakkaraju

mid single-digits in Q2 based on several factors including customer new programs put on hold for our component redesign. Cyclical demand from discrete orders and our execution performance issues in two locations, which we are aggressively working to recover.

We expect medical revenues to be down low teens based on the timing of customer program transitions for fluidics and cardiac programs. We have new programs with other medical customers that are in early ramp mode that should offset these transitions in the coming quarters. In test and instrumentation, the strong demand we saw in the past four quarters will continue in Q2 and we expect T&I to be up mid single-digits sequentially.

Turning now to the traditional markets. We expect computing revenues to increase sequentially by high single-digits based on current customer forecast and a combination of legacy and new programs in the high performance computing. Software revenues should be flat quarter-over-quarter, increased demand from satellite backhaul and edge device customers do not offset overall moderate demand softness from a variety of customers.

Implied in our guidance is a 2.7% to 3.2% operating margin range for modeling purposes. The guidance provided thus excludes the impact of amortization of intangible assets and estimated restructuring charges. Interest expense is expected to be $2.3 million and the effective tax rate is expected to be 18%. Expected weighted average shares for Q2 2018 are 47.69 million.

Operator, please open the call for questions.