Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ryan [Gaines] with Springhouse.
Ryan Gaines - Springhouse
Can you talk a little bit about gross margins? I understand your comments about the fourth quarter possibly getting a little bit softer but as you look out into the new year, where could you see gross margins going? Obviously the cost cuts have been pretty impressive and you ran 14%. I just wanted to see what you think kind of longer term.
Joseph C. Lawler
We continue to be focused on that sort of 12% to 14% range that we have been talking about for quite some time. We think that’s a competitive gross margin level that allows us to select and win the kinds of business that we feel is going to be appropriate to drive the other metrics that we’ve talked about, operating income, for example, revenue growth as markets recover. And I think the 12% to 14% continues to be our target range. We are very pleased with the progress that we’ve made so far and we’ll continue to push on that.
Ryan Gaines - Springhouse
Okay, and then just a couple more -- new business opportunities, another strong quarter -- Joe, do you feel like that’s more people who are new to outsourcing, or are you taking from other outsourcers who maybe are having difficult times? Can you talk a little bit about that?
Joseph C. Lawler
Yes, I really feel that we are seeing both. I am pleased with the number of new logos that we are getting, so clients that have not been outsourcing with us and some that have been in-sourcing and are starting to move to an outsourcing model.
I’d say the biggest issue and concern that I have on the new business front is really just that the slow-down in making decisions, a lot of clients, because of the volume reductions, because of the changes in transportation costs, it affects the economic model associated with supply chain outsourcing and that has caused a number of clients to just slow down their decision making until they can get a little more accuracy around the unit volume forecasts. But where we are seeing wins in the marketplace, I think we are winning it from current -- we are winning new business from current clients, we are winning new business from new logos as well. We will have on-boarded more new logos in fiscal ’09 than in any year prior.
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