Question-and-Answer Session
[Operator Instructions]. Your first question comes from line of Tien-Tsin Huang. Please proceed with your question.
Tien-Tsin Huang - JPMorgan
Hi, thanks. Just wanted to I guess first confirm that the only change in guidance is really just the inclusion of the PP&E-related depreciation that I calculate to be about $0.03 per quarter.
Robert Dykes - Senior Vice President and Chief Financial Officer Designate
That's right. It's between $0.02 and $0.03. It rounds to $0.03 and so we change it just for that.
Tien-Tsin Huang - JPMorgan
Terrific. Glad to see that. And then the... I guess just a couple of questions on the revenue line. Doug, the bookings performance in North America, how is that tracking in the fourth quarter and is there potential to see sequential growth in the fourth quarter or is there potentially some more decay [ph] there?
Douglas G. Bergeron - Chief Executive Officer
We haven't seen any material pick up in North America since the last book in August Tien-Tsin. We have got a lot of products ready for sale, but many of them unfortunately are leveraged to a more opportunistic environment. So I would not count on North America being a huge driver until the macroeconomic environment domestically picks up.
Tien-Tsin Huang - JPMorgan
Okay. And then in Latin America, I know you mentioned it, but there was a pretty big sequential uptick in the third quarter. Any unusual items in there and is this level sustainable for the fourth quarter?
Douglas G. Bergeron - Chief Executive Officer
What was unusual is our unusually good execution by management in Latin America led by Fernando. I think it was a little higher than you should expect going forward. They had an exceptional quarter and they will continue to perform well, but likely not at that type of level.
Tien-Tsin Huang - JPMorgan
Okay. And then lastly just on the gross margins, I was glad to see that you're basically halfway to your 40% target. It sounds like 1% was coming from corporate costs. You also called out the product reengineering and how that steps up in the next two to three quarters, but just broadly speaking, is there anything we should assume that could be non-linear going forward on the gross margin in the coming quarters from these items [ph]
Douglas G. Bergeron - Chief Executive Officer
There is enough moving parts in our business geographically product mix wise, COGS accruals related to various elements of the supply chain that it would be frankly unreasonable to expect monotonic... monotonically directional changes to gross margins. They will go up and they will go down. But I think generally speaking, you should be looking, as we said, for a nice improvement on our cost redesign efforts by the... in our second quarter results next year and a full... the full benefit of our cost redesign efforts in the numbers by the end of next year.
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