Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Our first question comes from the line Todd Cooper. Please proceed.
Todd Cooper – Stephens, Inc.
Yes, Collin have you calculated the pro forma EPS number, that would exclude the various one-time type charges?
Collin Dunn
No, I haven’t got -- well, worked on it, but I don’t have it with me, right now.
Todd Cooper – Stephens, Inc.
But would it be slightly -- a slightly profit?
Colin Dunn
For the quarter?
Todd Cooper – Stephens, Inc.
Yes.
Colin Dunn
It's a slight plus. It would be slight plus, I think.
Todd Cooper – Stephens, Inc.
Okay. And any comments on backlog entering the first quarter book-to-bill in the last quarter as it would relate to revenue guidance for the first part of the year?
Colin Dunn
Backlog is down, from a high, down -- I would say from the average last year, our backlog is down by 50%. I think we’re forecasting 30%. I think that 30% down in sales at this time. Look like down in sales for the first quarter. However, because of Chinese New Year late this year and last year, it's somewhat difficult to really predict another, I would say, another six weeks until we get a real handle on it.
Todd Cooper – Stephens, Inc.
30% down, is that sequentially, Dan? Or year-over-year?
Dan Bernstein
Sequentially, yeah, Todd.
Todd Cooper – Stephens, Inc.
Okay. And substantially lower gross margin in the quarter. Did that had to do with absorption on the lower revenue?
Colin Dunn
Yeah, it was absorption and we are lowering on all throughput. We certainly had -- most of the months in the quarter we had much higher labor rates. With only, really in the December quarter that we have really got away from all the more -- the worst of the overtime, we had a double time and triple time. Also the other thing that we haven’t had really come through yet, which we are looking hopeful, which is going to help us a lot is that, there was a still lot of raw material in both our out vendors and out chain going into the -- throughout the fourth quarter particularly related to copper and steel and other materials that we know we are coming down or have come down on a commodity basis but haven’t got through into our lower prices yet. So, there are all things that we will start to see some benefits from in the latter part of the first quarter.
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