Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Matthew Sheerin – Thomas Weisel Partners.
Matthew Sheerin – Thomas Weisel Partners
Rich, you gave a lot of detail there and we appreciate that and you talked about turbulence but could you tell us what you’re seeing so far this quarter, I know you don’t give guidance but, has the weakness you’ve seen continued? And, in the November quarter did you see things get worse later in the quarter which most of your competitors and suppliers seem to be saying and we hear that weakness continued in to December. So, what does the February quarter looking like right now?
Richard S. Schuster
Well certainly we did see the weakness in the third quarter accelerate in November. We continue to see weakness. Again, the visibility is not there, the response from our major customers is that, ?We’ll wait and see.? It doesn’t look positive at the moment but we don’t know how long the affects of the recession will continue. So, all I can really say is that the weakness does continue. I don’t know if Kent would like to add anything to that?
Kent Smith
As Rich mentioned, November is when we saw a change in bookings or a noticeable change and demand and visibility has been questionable for some time. I believe we’ll continue to see the same softness in the marketplace pretty much for most segments, if not all segments, for the foreseeable future.
Matthew Sheerin – Thomas Weisel Partners
Could you tell me what your book to build looks like right now?
Kent Smith
The book to build for the quarter ended finished off at approximately .84.
Matthew Sheerin – Thomas Weisel Partners
And is it in that neighborhood now?
Kent Smith
Yes, roughly the same.
Matthew Sheerin – Thomas Weisel Partners
Rich, you talked about the increase in the demand creation sales which is a positive up year-over-year for the quarter when your overall revenue was only flat yet your gross margin is still flat year-over-year. Is that because you’re seeing more margin pressure on the fulfillment side of the business or is it a mix issue?
Richard S. Schuster
I think that’s a good point to bring up. I’m going to let Kent answer that. I did want to , since this is Kent’s first conference call in his new position as executive vice president just give him a brief introduction to the people on the call. Kent has been with the company since 2003 in various roles as regional vice president and then senior vice president of sales in the Americas. Kent now has responsibility for global sales and we’re all very happy to have him in this position and think he’ll do a great job. On that note Kent why don’t you answer Matt on that question.
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