Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Christian Schwab – Craig-Hallum Capital.
Christian Schwab – Craig-Hallum Capital
The PLXT on a standalone basis what is that revenue going to be in Q1 without Oxford?
Arthur O. Whipple
We haven’t broken that out because we’re really struggling with this at this point. We think the combined is going to be this broad range of 14 to 18. But, candidly at this point there’s an awful lot of unknown in that space so we haven’t broken that out for you. I’m sorry.
Christian Schwab – Craig-Hallum Capital
Do you think that your business follows other people in the peer group down 20% give or take? Is that a fair place to start?
Arthur O. Whipple
I think that’s probably in the right range. But again, all of our mechanisms that we use for forecasting revenues are giving us different answers at this point so it’s very difficult to give you something that we’re comfortable with.
Christian Schwab – Craig-Hallum Capital
Where do you think inventory in the distribution channel is for your products?
Arthur O. Whipple
For just our channel which is just our distribution system it came down about $1.9 million. I think internally we’re expecting it to come down a little more than that actually. What’s hard to see is what actually happened at our end customers and through the CMs that they deal with. It’s hard to know what kind of declines in inventory you saw through there.
Ralph H. Schmitt
What we did see though is that the ship outs to those customers was higher than our ship in, in to our distributors. So, the demand is still there obviously, at a lower rate than it was before.
Christian Schwab – Craig-Hallum Capital
Can you quantify that for December? In terms of weeks of inventory on hand where does it compare to historical?
Arthur O. Whipple
I think it’s actually not all that far off. We’ve kind of been in the low 40 days. I think historically it might have been in the high 30s but it’s really not an unusual number.
Ralph H. Schmitt
It’s moved up about four days.
Christian Schwab – Craig-Hallum Capital
On the operating expenses just kind of back of the envelope what you said that $6.5 million which you guys did this quarter although I’m sure you’re not getting rid of all of the Oxford people but a 30% reduction almost eliminates all of that. Was that the original plan when you guys were going to do this?
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