Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We'll go first to Gary Hsueh with CIBC World Markets.
Gary Hsueh - CIBC World Markets
Great, thanks for taking my question. I guess my question is around shipments. The only person that's reported in this space is Lam Research. They talked about shipments pull-ins actually into the March quarter. You are talking about the net shipments kind of push-outs. You are both guiding to shipments being up. But could you help me fair it out what's the difference is between perhaps some of your competitors. I think you pointed out that you have limited exposure to RISC chip, but anything else going on there?
Rick Hill
No, I think the shipments were largely memory-driven. We did see some pull-ins from a logic standpoint, but then that was in a negative direction, and it was somewhat of a surprise to us. But it was not as a result of loss of business. And again, we do see it going up in the second quarter.
Gary Hsueh - CIBC World Markets
Okay. And if I could sneak in one last question here to Bill. Bill, on gross margins, you basically talked about hitting 52% to 54% gross margin, I have to assume that that's a much higher kind of revenue run rate. If you kind of bring that back down to the earth at around the $400 million level, what does that translates to in terms of gross margin targets at roughly $400 to $420 million kind of range for the year?
Bill Kurtz
Sure. As we have commented on our current gross margins now running approximately 50% are a function of our current product mix. But we anticipate even after $400 million of being able to improve margins from here, as Rick pointed out, by making further improvements in the product portfolio, getting value differentiation for what we sell. And so, we see an ability to improve gross margin from here, even at the current level. Now, we do get a benefit from higher revenue, but it's not the big driver that gets us to 52% to 54%. The big driver that gets us to 52% to 54% is continuing to invest in the quality of our product portfolio to get differentiation to get the value of that getting to the bottom line.
Gary Hsueh - CIBC World Markets
All right, great. Thanks.
Operator
And we'll take our next question from James Covello with Goldman Sachs.
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