Caller for CJ Muse
Great. Thank you so much.
Paul Coghlan
You are welcome.
Operator
We will take our next question from Craig Ellis. Go ahead. Your line is open.
Craig Ellis, B. Riley
Thanks for taking the questions and there are really just a couple clarifications. Paul, first on inventory was the point that the on-hand increase in the fiscal second quarter being due to planned facility shutdowns around Chinese New Year. Was that meant to imply that we should expect inventory days to go back down by five or so exiting this quarter or what are the points on the change in the composition of inventory really meant to imply that will probably stay at these current levels as we look ahead?
Lothar Maier
At the moment we think inventory will go down at the end of the March quarter, but again we have to see how that plays out, but not go down dramatically but we think it would go down.
Craig Ellis
Okay. The other follow up was, just on some of the comments around the strength that you would expect to see in the US. As you look inside the orders that you have seen in the business recently — whether it would be on an application basis for those orders that are driven in the US or by customer type, small to medium size business versus very large industrial or auto OEMs — are you seeing a change in some of those areas relative to what you were seeing last year at this time that went further confidence to the outlook for 5% top-line growth?
Paul Coghlan
That is hard. I mean, we told you that our industrial business overall grew — the bookings in it grew — and that’s where you would have more of these smaller customers as opposed doing something like computer or communications. When we look at our expectations of our smaller customer base, we think they would be using – we were designing in well more product there. Overall, I think it is probably early to make any say, wow, call at. that’s all picked up, but on the margins probably it has probably pick up a bit and we will see as the year goes on if it picks up even more to help us attain goals we set earlier for annual year-over-year growth.
Craig Ellis
That’s it. Thanks, guys.
Paul Coghlan
You’re welcome.
Operator
We will take our next question from Vivek Arya. Go ahead. Your line is open.
Vivek Arya, Bank of America Merrill Lynch
Thanks for taking my question. I am wondering, I believe you are in a sell-in model in your overseas markets, where everyone is seeing a lot of volatility. Do you think that impacts your visibility in any way? I am just curious, what do you have in your dashboard to monitor overseas demand trends beyond just the reports from the distribution channel?
Paul Coghlan
Well, a lot to say, some of my overseas sales although they go down through distribution it is our sales force that is dealing with the customer and designing in the product. For example in Japan, almost all of us sales go through distributors, but yet we have a very significant sales force and a lot of the actual selling activity takes place with them, so we have got direct knowledge from our sales force. Then in places like Europe, what was your question there again?
Vivek Arya, Bank of America Merrill Lynch
No. Just in general, Paul, because you are in that sell-in model in overseas markets and that is where we are seeing the most flux because of oil prices and other macro factors. I am just trying to reconcile that with the seasonal patterns that you are noticing and I am wondering if the visibility is impaired in any way because you are more of a sell-in overseas versus sell-through here in the US.
