Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We'll take our first question from Matt Sheerin with Thomas Weisel Partners.
Matthew Sheerin - Thomas Weisel Partners
Yes, thanks and good morning. My first question is just in regard to your component guidance and where... I mean, I appreciate that visibility is limited. But you are just about half way through the quarter and your guidance basically implies down 2 to down 18%. So what has to happen in the next six weeks to get to the low-end versus the higher end of your guidance?
Michael Long
Matt, this is Mike. As we said before, we've seen a decline in book-to-bill after the December quarter. And we did see some cancellations and push outs. We need to see a more rationale purchasing with demand being real if you will in the near-term.
Right now the lead time as we said before are on the low-end of normal, so the ability to get product to customers is there, if we do see a change in the demand environment. Does that answer your question?
Matthew Sheerin - Thomas Weisel Partners
Yeah, well let me ask another way. So, if... the current weekly run rate you're seeing now and maybe just if you adjust that for the Chinese New Year, and if that continues at that run rate, would that basically hit the low end of your guidance? So in order words, would you need daily run rates to increase significantly to get to the mid range or high end?
Paul Reilly
Hey Matt, it's Paul. Interestingly, first Chinese New Year which makes us a bit more complicated for us an estimation. In fact, the more we see, the more we learn. Folks in Northern China are just came back from their two plus week holiday yesterday. So it's difficult to understand what's going to happen in China, in light of the very extended holiday period.
Our guidance is always given to you with our best thoughts of what's going to happen, with a range that we think we can deliver on. We can't call what's going to happen in the rest of February and the rest of March, and we give you our best shot of what we think today.
Matthew Sheerin - Thomas Weisel Partners
Okay. I appreciate that. And then, just looking at the, your ERP system, if you could just update the... how that's going, what, where you've implemented it so far, any hiccups. And then on the expense side there you said 50 to 60 million in expanses. How much is that up incrementally from last year and if you can give us an idea or the expenses for next year going to go down?
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