Question-and-Answer Session
Operator
Your next question comes from Jim Suva - Citigroup.
Jim Suva - Citigroup
Operating margins at 2.55%, pretty impressive, but I believe I heard Paul mention that the majority of the restructuring benefits are now built into the income statement. I wanted to see if I heard that correctly and do you actually see 3% operating margins at some point on the horizon, or what is the revenue run rate we need to get there, or what are the milestones we can look forward to to potentially getting there, or is that just a little bit too high to expect?
Paul Read
We have recognized roughly 75% of the savings in the income statement so far, in the September quarter run rate, so we still have a little bit left to go. I said the majority of the savings have realized, which they have, and we will probably realize the remaining 25% mostly in the December quarter and then tailing off into the March quarter, which will give the down run rate that we said, $230.0 million to $260.0 million on an annualized basis.
The 3% operating margin is our target still. Like I said last quarter, we are looking forward to a little bit of a seasonal uptick in revenue, a good mix profile, our verticals continuing to improve their performance, and a little bit more restructuring coming. So that's our target. You know, our guidance suggests a little bit below that, at the midpoint level, which we understand, but at the high end, when you moderate out, it should come around 3%, which we shouldn't fall but there's a lot of things that have to come to play for that to happen.
Jim Suva - Citigroup
I believe Mike mentioned that there were some component shortages on the mobile side of things. Given the recession and the relatively short supply lead times from the semiconductors and the glass makers and things like that, I guess I'm a little surprised to see and hear of some component shortages. Can you talk about maybe what they were and more importantly, have they been resolved or are you still seeing some shortages that are constraining your revenues?
Michael M. McNamara
We are certainly seeing more component shortages. We actually could have shipped more revenue last quarter had we not had any and the component shortages really are not just in mobile but they are somewhat across the board. We are chasing quite a few parts in quite a few different product categories right now. And in general, what we're seeing is that there is a little bit of a business expansion out there and the flexibility in the component supply base is just not there.
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