The company projects second-quarter revenue to be between $525 million and $535 million, with the midpoint representing a 10.6% sequential increase. The decline in GAAP gross margin is primarily attributed to the amortization of acquisition-related intangible assets, while the company-defined non-GAAP gross margin remained relatively stable at 68.0%. Analysis suggests that the key will be whether the growth in AI connectivity business can offset the pressure from rising acquisition costs and operating expenses.