Question-and-Answer Session
Operator
(Operator instructions) The first question is from the line of Rick Schafer from Oppenheimer.
Rick Schafer – Oppenheimer
Hey guys. I got a few questions here. So that’s alright. I think I'll start with the first and what gives you guys, Jim, what gives you confidence that the March quarter revs are only going to be down about 20% at the low end? And I guess, sort of what turns do you need to make that guide? And maybe the third thing on that question is, do you assume that this is the low watermark for revenues?
Jim Peterson
Yes. We have a lot of visibility obviously in the High-Rel business. When we have to go into a quarter we are pretty confident that – of our guidance range. This one here, I put full capitulation in guidance share.
Rick Schafer – Oppenheimer
Okay.
Jim Peterson
Let's see what's going on out there. Last quarter we said they had a lot of mixing, the week all set by Hi-Rel. And now I'm saying the analog mix signal is just part. And I could – our team wants me to say horrible three times. And somewhat offset by Hi-Rel. Things are a little different in Hi-Rel and I'll walk you through it. Let me get the turns rate. You hit the high end of the guidance, at this point my churn rate is on about 17%. So, this is probably the most cautious you'll ever see Peterson, but I realize stockers out there people saying take air out of the balloon, whatever it seems may be. Call it what you want, but my churns rate for the high end of the guidance is on about 17%. In the norm, probably 33% to 38% at this time. So, this is certainly capitulation in guidance. And let me just try to give you a couple more pieces of puzzle here. If you're that confident then you wind this down 16 to 20. Analog mixing, it's as bas as everybody says out there, right. We are not immune from it. All the market segments are horrible and getting uglier, and quite honestly, it's like flying an airplane without any gauges, right. I'm not sure how much fuel is in it. My distributors, they are pretty much closed for business, except for I'm trying to get low bids. And the end customers, they even closed since the first second week of December. I think they are going to close there through the Chinese New Year. Though, we don’t have a lot of visibility. You know I'm watching some of the larger guys out there and they are just not even going to give guidance. So, I'm pretty comfortable. So why the down tick on the road then, if you're so confident in the strength, backlog is up, right, a book of one-to-one, know that there is a horrible market, the analog mixing and there must be some good bookings in the Hi-Rel business than there is. But here is what it is. 50% of that business go through distribution shape and with couple of things going on distributors one, they have already said they are not sure how they can secure a lot of financing. Right.
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