Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Brian White - Collins Stewart.
Brian White - Collins Stewart
I’m wondering if you could talk a little bit about when you think you can get back to break even levels and what sort of sales range we should think about?
Martin Slark
Brian, the forecast that we have and total forecast that we have from our divisions show that we would be above the break even position in the fourth quarter this fiscal year. That is accomplished through a combination of achieving the cost savings that we talked about in the restructuring plan and our projected increase in revenues that we’re expecting to see based on some recovery after the Christmas/Chinese New Year period. First indication will be what other run rates or bookings in March. Some portion of the slowdown that we saw in the October, November, December period was obviously an inventory correction which the underline weak economic climate. How much of that? It’s hard to tell. So certainly our belief right now, based on the fact that I talked about, would be that we would be above break even in Q4.
Brian White - Collins Stewart
Martin, if you look at all the markets were tough here in the fourth quarter, but if you look at a calendar 09, what markets are the most optimistic or should hold up the best and what markets do you think will be the most challenging over the next 12 months?
Martin Slark
I have to tell you that I think Molex along with a lot of other companies is looking at that, trying to understand which customers frankly within those end markets are going to continue to do well. I think when we look at that we assume that within the data market that data storage is likely to continue to be strong, because even though companies like Molex, for example, can cut back on their computer equipment renewal, the amount of data we store these days, there’s an ongoing need for that. And there’s a lot of legal requirements out there to store increased data.
We think that telecom infrastructure has good potential, because when you look at some of the government stimulus that is going on, and in particularly in Asia where the Chinese government talked about billion dollars plus going into the telecom market and the release of various licenses. There’s a lot of infrastructure we put in place there. So we think telecom infrastructure has some potential too.
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