Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Steven Fox – Banc of America
Steven Fox – Banc of America
Just looking at what you’re talking about the potential for gross margins next quarter, just understand better on roughly a slight decline in sales, you’re talking about roughly a 20 basis point improvement in gross margins, can you just explain how that’s going to happen and then I’m a little concerned about what’s happening under [print] circuit board side in terms of pricing pressures, can you put your thoughts around what’s going to happen in pricing especially in the March quarter.
Jure Sola
First of all, this started with us as we all know sometime in the last couple of weeks of September and it got really bad and then things were starting to kind of level off early November and then things just didn’t get better. What we did in early October is said, hey this thing is going to get pretty bad and let’s, we have to take some costs out and that’s really one of the main reasons that our margins, we are actually taking costs out to really bring the company down to present demand cost wise.
And when it comes to the pricing, actually what we’ve seen from pricing so far that’s holding at the same time there are certain components we’re able to get a little bit cheaper today then maybe what we paid six months ago so that’s helping out.
The question on printed circuit board similar thing, I think our circuit board its similarly down to the rest of the business. As you know to do an assembly you need a bare board, but I would say that our circuit board operations are holding their own. They had to adjust their costs, they’re [inaudible] profitable and we’re really focusing there, expanding new technology and on the positive side they’re doing a lot of R&D, a lot of new programs out except the volume is not there.
Pricing on printed circuit boards I would say so far what we’ve seen is stable.
Steven Fox – Banc of America
Okay and just on the OpEx side, it looks like you reacted during the quarter with some expense actions, are there other things that you could do beyond what you mentioned if say demand continues to be weaker then you’re thinking.
Jure Sola
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