Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Our first question comes from Jeff Rosenberg of William Blair & Company. Your line is open.
Jeff Rosenberg - William Blair & Company
Hi, thanks. I guess the first question is, when you had originally talked about your margins coming into this quarter, you expected some lingering difficulties in terms of gross margins from the shortfalls in the June quarter and the purchase prices that resulted from that and vendor incentives, etcetera. It sounds you outperformed those concerns. Can we talk a little bit about what happened there?
Richard Cleys
Well, as you know Jeff – hi, Jeff, first of all. This is Rich. As you know we were working on the international pricing issue with our vendors and we resolved that, so that we were able to get the benefit of that resolution from the first day of the quarter, all the way through the end of the quarter. In addition, we had some good program results, which benefited us during the quarter, which we had not projected. So, we had a strong international margin versus what our expectations were.
Jeff Rosenberg - William Blair & Company
Okay. And as we look to the embedded guidance on margins, would you just talk about for September just without having the chance to quickly do the math. It sounds like we are not expecting operating margins to stay quite as strong as they were in Q4. Is that gross margin issue? Is that some increase in operating expenses? What’s happening there to bring margins back in a little bit?
Richard Cleys
Yeah. I think that at 10.6% we have these issues, these benefits in the European operations. We don’t expect all of those benefits from the programs to repeat. So, I think a more normalized margin expectation would be about 10.3%. As far as the SG&A goes, if you adjust out some one-time things, the SG&A run-rate should be about what it has been. So, if you would have model on expectation in the neighborhood of about 3.8% operating margin, that will probably work with our mid-point guidance of $0.46 and $540 million.
Jeff Rosenberg - William Blair & Company
Okay. And then I guess the last question I’ll ask you for now is on your description of the impact of not having yet resolved the Avaya issues. And Mike, can you talk a little bit about, I mean, obviously normally, you get quite a kick in the September quarter from them seasonally a bit finish their fiscal year, what you are seeing there relative to the fact that there are not private? How [does all] that factor and what you would have expected and then how we should think about going into December relative to the fact that normally we would have expected you to see a little bit of retrenchment there from the seasonal strength. But maybe that’s somewhat of a silver lining that you sort of build in December, I mean how should we think about that?
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