Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Craig Hettenbach – Goldman Sachs.
Craig Hettenbach – Goldman Sachs
Yes. Thank you. On the topic of gross margin, both you and Arrow had been expecting for September quarter roughly flattish gross margin and at both companies it was down. So just want to get some color into December quarter that by group you expect it to be up, if there's anything you could provide there that gives you the confidence to guide it flat to up.
Roy Vallee
So two things, one primary issue that was different than what we anticipated going into the September quarter was the rate of mix shift into Asia. So that's one of the factors. The other thing that we did not fully anticipate was the gross margin decline at our EM business in Europe. It really mirrored what happened in the Americas in the prior quarter.
And as we pointed out on the call, we did see a nice recovery in the Americas and we believe that Europe will follow as the supply chain adjustments play themselves out there.
As far as the coming quarter, our expectation is that gross margin will improve at EM globally and then at Tech Solutions it's going to be somewhere between flat and up slightly based on our current expectations. And then of course what happens is TS will grow much more rapidly than EM in the December quarter based on the year-end IT activity. So at the enterprise level, we expect it to be flattish depending on mix, perhaps up just a little bit.
Craig Hettenbach – Goldman Sachs
If I could just follow-up, just sticking with gross margins, anything in terms of lead times and backlog and pricing if you think we're kind of near the trough of that at this point?
Roy Vallee
Well, look. Let me take a shot at that. I think that in the September quarter and certainly spilling over into the December quarter, we're seeing in the components market a significant number of product shortages that are driven by the capacity reductions that had been put in place coupled with seasonal factors.
What's not clear, Craig, is what happens after we get through December and out into the March quarter. So in the short term, the answer to your question is yes. Last quarter and this quarter, in terms of incoming orders, we're seeing extended product lead times in certain cases. That is creating more firmness in the market but we're not clear yet what happens as all the capacity comes back online and the seasonal factors are behind us.
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