Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question comes from the line of Matt Sheerin with Thomas Weisel Partners. Please go ahead.
Matt Sheerin – Thomas Weisel Partners
Yes, thank you. Just a question regarding your outlook, on January 5th, when you pre-announced the upside to the last quarter, you said that strong customer demand had continued into the fiscal second quarter. Yet, here we are about a month later and you are saying that you have seen softness in orders. So is that something that you have seen in the last couple of weeks? And is it coming across your four key customers or just one or two?
Reza Meshgin
Matt, this is Reza. Yes, to answer your question, this is more recent. So your reference in the last couple of weeks is accurate. And part of it is also seasonality, but the difference between what we had in mind and where we are now is just that, the recent softness in the last couple of weeks. And the softness, although it is across the board, and uniform with almost all customers, more exaggerated for certain products. I – because of confidentiality of customers, obviously, I cannot expand anymore on that. But it is across the board more or less.
Matt Sheerin – Thomas Weisel Partners
Okay. And is that softness in products that had been strong or products that haven't been strong, just continue to get weaker?
Reza Meshgin
It's mostly for the products that were running stronger.
Matt Sheerin – Thomas Weisel Partners
Okay. That's helpful. And then on the gross margin, I know that's difficult I mean, you do the best you can in terms of providing a range yet I believe in at least four quarters of the last five quarters, you have exceeded that gross margin range that you have given. So just trying to get a sense of your comfort level going into this quarter that you are going to be in the 13% to 15% as opposed to be higher or lower than that?
Tom Liguori
Matt this is Tom. We feel good about that range and we have tried to narrow the range and be a little bit more concise on the guidance we're giving you on both revenues and margin, but right now that margin range is based on the product mix and the leveraging of our fixed overhead at that current sales volume.
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