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The anticipated decline is based on seasonally soft client SSD Controller sales, flat eMMC controller sales and declining SSD solution sales. However, on a year-over-year basis, sales are expected to grow in the range of 714%. For the first-quarter, management expects SSD controller sales to decline seasonally. However, sales growth is expected to resume in the second-quarter driven by strong pipeline of SSD controller projects, including new PCIe/NVMe SSD controllers. Moreover, eMMC controller sales will likely be flat, similar to past seasonal patterns. SSD solutions sales will likely continue declining further in the first-quarter due to limited availability of high grade flash components at favorable prices. However, sales are anticipated to rebound following shipment of the new 2017 projects. Non-GAAP gross margin is anticipated within 4850%, reflecting less contribution from client SSD controller sales.

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