Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Jimmy Kim - RBC Capital Market.
Jimmy Kim – RBC Capital Market
I have a couple of questions for you. First, you talked about getting your on-time shipping up to 90%. What is that number currently?
Richard Thompson
Yes. Right now, this is Rich Thompson; we are basically operating in near 70% range. We have improved that dramatically from when we started this project. But we certainly have a long way to go. We are not by any stretch of imagination finished with this project.
Jimmy Kim – RBC Capital Market
Okay. And any sort of timeline as to when you anticipate being at 90%?
Richard Thompson
Yes. Our goal was to be at 90% by the end of this year. We think, we are a bit behind and we should be able to improve it dramatically but it will be next year before we get to 90%. What has improved and is not shown in the percentages we just discussed is the degree of how much past due we are. It was weeks when we started this process, now it is two days past due. So in some instances, we are a just a day or two past due and we count that as being past due in the percentage.
Jimmy Kim – RBC Capital Market
I see. Let us see. So if the tech cycle were to get softer, and it looks like there is a pretty serious recession looming, does Power-One, would you need to do further restructuring of your manufacturing base?
Richard Thompson
Yes. I think that is a very good question. It goes to reason, our goals is to be profitable and as our top line growth changes, well obviously we have to take steps to match our cost basis. So, we will aggressively match our revenues streaming and our cost basis. So if you saw a significant drop-off in revenue, you would see actions from us.
Jimmy Kim – RBC Capital Market
I see. And as far as the renewable energy markets, can you give us some kind of idea of what we could expect in 2009?
Richard Thompson
Sure. What we disclosed in the Q last time is that we hit approximately $19 million to $20 million in revenue in Q2. Q3 was very similar to that. The difference being in Q3, we did not have any very large projects in Q2 and partially in Q3, we completed delivering inverters to a large side in Spain for a customer called [Isolat]. Now we have a much broader base so we are looking forward to avoiding lumpy performance in the future which we would associate with the startup business. We are broadening our bases, we mentioned into Europe, our qualifications, our products are being qualified now into the U.S. and we look forward to a great year in renewable energy. As I said in my comments, we would expect renewable energy to be a significant portion of the Company next year and to exceed $100 million dollars in revenue.
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