Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions) Okay. The first question comes from Nat Kellogg. Please state your company name followed by your question.
Nat Kellogg - Next Generation Equity Research
Yeah. Nat Kellogg calling from Next Generation Equity Research. How you doing this morning guys?
Michael Goldberg
Good. How are you?
Scott Stephens
Good morning.
Nat Kellogg - Next Generation Equity Research
Just -- you guys mentioned a little bit about gross margins getting better next year. And I know some people sort of talked about now that couple other guys in the service that have come out recently, just talking about -- now that inventories are little bit more inline with shipment levels that folks are focused little bit more closely on, getting value for the products versus just trying to generate the cash by liquidating inventory.
And so, just curious if that's what you're seeing and that's why you are a little bit more optimistic about 2010 margin side or whether there is something else as far as pricing or volume that give you that confidence?
Michael Goldberg
I think it's more the less than that we see the environment for 2010 being better than 2009. So, both in demand and in pricing through the first, certainly, through the first half of this year, we've seen pretty significant pricing declines.
Those have kind of stabilized now and we start to see those pick up. So in that environment, we just think the environment would be different next year than this.
And typically in that environment, we should see some sort of pick up in some gross margins and the de-stocking part of that is a component of that as well.
Nat Kellogg - Next Generation Equity Research
Okay. And on inventory side, I mean you guys don't have had some projects that you have mentioned but do you guys still feel like you have a little more to go here in the fourth quarter or are you pretty much comfortable with where the inventory level side?
Michael Goldberg
No. We got a long a way to go. I think Scott mentioned it that we're at 200 days of our inventory. We're targeting to get our inventory back into initially into, into at our historical levels of about 120 days. And then, the targets have improved beyond that as well. So, we've got a way to go on our own inventory levels.
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