Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Bill Ong with American Technology Research with American Technology Research. Please proceed with your questions.
Bill Ong - American Technology Research
Yes. Good morning, everyone.
Scott Kulicke
Hi, Bill.
Bill Ong - American Technology Research
Yeah, how are you doing? On the $40 million revenue guidance, how much of that is the Orthodyne business? And maybe as a framework, let's say over the last five years or so, what's been their peak and trough annualized revenues and margins? Just so we get a sense of the boundary conditions?
Scott Kulicke
First, Bill, we don't break revenue projections out by product line or segment. So I'm not going to go there. In terms of Orthodyne's historics?
Bill Ong - American Technology Research
I know they did $110 million in 2007, but if I can get a sense of high and low points. I know gross margin is 50%. At least help us model going forward.
Scott Kulicke
On a quarterly basis, I think their high was $22 million and lows, depending on how far you want to go back. They are all over the place, like everybody else is. Margins are actually a little bit higher than 50%. 52%- ish is sort of the historic margin average.
I think there is a lot more information. We did a filing recently on Orthodyne that included Orthodyne's numbers. Also, to help people understand Orthodyne better is the purpose of the Investor Day we're going to have in San Francisco. Hopefully, we'll have your participation.
Bill Ong - American Technology Research
I will be there. How about operating margins and net margins?
Maurice Carson
55%
Scott Kulicke
I'm sorry. Maurice is correcting me. Their gross margins have been in the 55% range.
Maurice Carson
I'm sorry. That was my fault.
Bill Ong - American Technology Research
And operating margins and net margins?
Scott Kulicke
Maurice?
Maurice Carson
I only have it by dollars here, but it's been 10% for the reported year around last year operating income. I don't have all the filings in front of me, Bill, but all of that should have been in the 8-K/A we filed last week. Also, I'd make the point that, obviously net margins and operating margins vary a lot with revenue.
Bill Ong - American Technology Research
Okay, that's helpful. Thank you.
Operator
Our next question comes from Gary Hsueh with Oppenheimer & Co. Please proceed with your questions.
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